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 the total interest charged in this scheme is:
Option 1: INR 1,563
Option 2: INR 1,536
Option 3: INR 1,632
Option 4: INR 1,602
Correct Answer: INR 1,536
Solution :
Let the loan amount be P.
Then using
P =
⇒ P =
=
=
=
=
Now,
Hence, the correct answer is INR 1,536.
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