Management Aptitude Test 2014 Paper

Question : 119 of 200

Marks: +1, -0

Mukesh borrows a certain sum of money from the ABC Bank at 10% per annum at compound interest. The entire debt is discharged in full by Mukesh on payment of two equal amounts of ₹ 1000 each, one at the end of the first year and the other at the end of the second year. What is the approximate value of the amount borrowed by him?

₹ 1852
₹ 1694
₹ 1736
₹ 1792

Validate

Solution:

I/{1+R/100}

I/({1+R/100})^2

1000/{1+10/100}

1000/({1+10/100})^2

1000/11×10

1000/(11)^2×(10)^2

10000/11+{1000×100}/121

= 909.09 + 826.44 = ₹ 1736 (approx)

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