CAT Exam Model Paper 3 with solutions for free online practice

Question : 99 of 100

Marks: +1, -0

Satyam took loan from IDIDI Bank for his 2 years course of MBA at IMD. He took the loan of ₹ 6 lakh such that he would charged at 8% per annum at Cl during his course and at 10% Cl after the completion of course. He returned half of the amount which he had to be paid on the completion of his studies and remaining after 2 years. What is the total amount returned by Satyam?

₹ 7.73323 lakh
₹ 7.58 lakh
₹ 7.336 lakh
None of these

Validate

Solution:

(a) Amount which is to be returned on completion of studies
= 600000 × (1.08)

^{2}

= 699840
But only half of 699840 is returned which is equal to ₹ 349920
∴ Amount which is returned after two year of completion of studies

= 349920 ( 1 + { 10 } /{ 100 } ) ^ { 2 } = 4234032

Total amount returned= 349920 + 423403.2 = 773323.2 = ₹ 7.73323 lakh

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