Management Aptitude Test Sep 2013 Paper

Question : 102 of 200

Marks: +1, -0

Palvinder owes ₹ 1040000 to a bank, and he returns ₹ 40000 quarterly to the bank. If the tax on the money Palvinder owes is compounded quarterly by 0.25% starting before Palvinder paid the first payment, how many months would it take Palvinder to reach a point where he owes the bank not more than 1 million rupees?

3
5
9
None of these

Validate

Solution:

Tax for first 3 months

{1040000 × 0.25×3}/{12×100}

= ₹ 650
Then, Palvinder pays 40000 after 3 months
∴ Amount left = 1040650 - 40000 = ₹ 1000650
Again, the tax is calculated for next 3 month on ₹ 1000650

{1000650×0.25×3}/{12×100}

= ₹ 625.40
Now, amount left with Palvinder
= (1000650 + 625.40) - 40000= 961275.4
So, it takes 6 months for Palvinder.

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