Management Aptitude Test 2016 Paper

Question : 110 of 200

Marks: +1, -0

A man borrows ₹ 4000 from a bank at 7

1/2

% compound interest. At the end of every year, he pays ₹ 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?

₹ 123.25
₹ 125
₹ 400
₹ 469.18

Validate

Solution:

(a) Principal for 1st year = ₹ 4000, Rate (r) =

15/2

%
Interest for 1st year =

{4000×15}/{2×100}

= ₹ 300
Principal for 2nd year = (4000 + 300) - 1500 = ₹ 2800
⇒ Interest for 2nd year =

{2800×15}/{2×100}

= ₹ 210
Principal for 3rd year = (2800 + 210) - 1500 = ₹ 1510
⇒ Interest for 3rd year =

{1510 × 15}/{2×100}

= ₹ 113.25
So, amount owed by man = (1510 + 113.25) - 1500
= ₹ 123.25

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