Question : A loan is to be returned in two equal yearly instalments. If the rate of interest is 10% p.a. compounded annually and each instalment is INR 5,808, then 60% of the total interest (nearest to INR) charged in this scheme is:
Option 1: 917
Option 2: 911
Option 3: 922
Option 4: 913
Latest: SSC CGL preparation tips to crack the exam
Don't Miss: SSC CGL complete guide
Correct Answer: 922
Solution :
Let the loan amount be P.
Then using
P = $\frac{\text{A}}{(1 +\frac{\text{R}}{100})^T}$, where A is amount due at R% rate of interest for $T$ years
⇒ P = $\frac{5808}{(1+\frac{10}{100})}$ + $\frac{5808}{(1+\frac{10}{100})^{2}}$
= $\frac{5808}{\frac{11}{10}}$ + $\frac{5808}{\frac{121}{100}}$
= $\frac{58080}{11}$ + $\frac{580800}{121}$
= 5280 + 4800
= 10080
Now,
Interest = (2 × instalment – P)
⇒ Interest = (2 × 5808 – 10080)
= (11616 – 10080)
= 1536
So, 60% interest charged = 60% of 1536 = 921.6 $\approx$ INR 922
Hence, the correct answer is 922.
Related Questions
Know More about
Staff Selection Commission Combined Grad ...
Answer Key | Eligibility | Application | Selection Process | Preparation Tips | Result | Admit Card
Get Updates Brochure
Your Staff Selection Commission Combined Graduate Level Exam brochure has been successfully mailed to your registered email id “”.
