Question : A loan of Rs. 12300 at 5% per annum Compound Interest be repaid in two equal annual instalments at the end of every year. Find the amount of each instalment.
Option 1: Rs. 6651
Option 2: Rs. 6615
Option 3: Rs. 6516
Option 4: Rs. 6156
Correct Answer: Rs. 6615
Solution : Let the instalment value be Rs. $P$. According to the concept, $\frac{x}{(1+\frac{R}{100})} +\frac{x}{(1+\frac{R}{100})^2} +...........+\frac{x}{(1+\frac{R}{100})^n} =A$ where $x$ is the instalment value, 'A' is the total amount that was created in instalments and n is the number of instalments. $P(1+\frac{5}{100})+P=12300(1+\frac{5}{100})^{2}$ ⇒ $1.05P+P=12300×\frac{21}{20}×\frac{21}{20}$ ⇒ $2.05P=13560.75$ ⇒ $P=\frac{13560.75}{2.05}$ = 6615 Hence, the correct answer is Rs. 6615.
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Question : In a store, Arun has two options to buy a mobile phone, either he can pay the full amount of Rs. 2,500 or he may buy at an instalment scheme, i.e. Rs. 520 in down payment and four equal instalments, rate of interest is charged at 25% p.a. simple interest. Arun buys a mobile phone on an instalment scheme. What is the monthly instalment for Arun?
Option 1: Rs. 510
Option 2: Rs. 530
Option 3: Rs. 550
Option 4: Rs. 520
Question : John invested a sum of money at an annual simple interest rate of 10%. At the end of four years, the amount invested plus interest earned is Rs. 770. The amount invested was:
Option 1: Rs. 650
Option 2: Rs. 350
Option 4: Rs. 500
Question : A man borrowed Rs. 50,000 from a bank at 10% per annum, compounded annually. At the end of every year, he pays Rs. 15,000 as part payment of the loan and interest. How much does he still owe to the bank after three such instalments?
Option 1: Rs. 16,900
Option 2: Rs. 15,800
Option 3: Rs. 15,200
Option 4: Rs. 16,200
Question : A certain amount of money earns Rs. 540 as a simple interest in 3 years. If it earns a compound interest of Rs. 376.20 at the same rate of interest in 2 years, find the amount (in Rs.):
Option 1: Rs. 1600
Option 2: Rs. 1800
Option 3: Rs. 2000
Option 4: Rs. 2100
Question : What annual instalment(in INR approx.) will discharge a debt of INR 9,429 due in three years at 12.25% simple interest per annum? [Note: Instalments will be paid at the end of Year 1, Year 2 and Year 3.]
Option 1: 2,840
Option 2: 2,800
Option 3: 2,700
Option 4: 2,760
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