Question : Rajnish borrowed INR 1,500 from a bank and repaid the entire amount with interest in two equal annual instalments, the first instalment being paid a year after Rajnish borrowed from the bank. If the rate of interest was 40% per annum, compounded annually, then what was the value (in INR) of each instalment paid by Rajnish?
Option 1: 1125
Option 2: 1470
Option 3: 1225
Option 4: 1350
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Correct Answer: 1225
Solution : Let the two equal instalments be $P_1$ and $P_2$ Given: $P_1 + P_2 = 1500$ and rate of interest $(R)= 40 \%$ Since annual instalments are equal, So, $P_1(1+\frac{R}{100})=P_2(1+\frac{R}{100})(1+\frac{R}{100})$ ⇒ $\frac{P_1}{P_2}=1+\frac{R}{100}=1+\frac{40}{100}=1+\frac{2}{5}=\frac{7}{5}$ ⇒ $P_2 = \frac{5P_1}{7}$ Now, $P_1 + P_2 = 1500$ ⇒ $P_1+\frac{5P_1}{7}= 1500$ ⇒ $\frac{12P_1}{7}= 1500$ ⇒ $P_1 = \frac{1500×7}{12}=875$ Installments = $P_1(1+\frac{R}{100})=875(1+\frac{40}{100})=875×\frac{7}{5}=1225$ Hence, the correct answer is 1225.
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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
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
Question : A person borrowed INR 2,000 at 5% annual simple interest repayable in 3 equal annual instalments. What will be the annual instalment?
Option 1: INR $730\frac{10}{63}$
Option 2: INR $840\frac{10}{63}$
Option 3: INR $640\frac{11}{63}$
Option 4: INR $250\frac{10}{63}$
Question : Rahul invested equal sums of money at compound interest under two schemes A and B. Under scheme A, the interest rate was 10% per annum, and under scheme B, the interest rate was 12% pa. The compound interest after two years on the sum invested in scheme A was INR 1,050. How much is the interest earned under scheme B after two years, if the interest is compounded annually in both schemes?
Option 1: INR 1,722
Option 2: INR 1,270
Option 3: INR 1,272
Option 4: INR 1,372
Question : A sum of money is paid back in two annual instalments of Rs. 17,640 each, allowing 5% Compound interest compounded annually. The sum borrowed was:
Option 1: Rs. 32,800
Option 2: Rs. 32,200
Option 3: Rs. 32,000
Option 4: Rs. 32,400
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