Compound Interest Practice Test 1

Question : 14 of 40

Marks: +1, -0

A man borrows Rs 7,50,000 to build a house. He pays compound interest at 12% p.a. He lets out the house and receives Rs 25,000 per month as rent; from the total rent collected during the year, he pays out the yearly installment. After two years, how much is the amount he has to pay?

Rs 3,40,800
Rs 3,04,800
Rs 3,60,053
Rs 3,08,005

Validate

Solution:

P = Rs 7,50,000; T = 2 years; R = 12%
Amount

=7,50,000(1+12/100)^2

=7,50,000×112/100×112/100

= Rs 9,40,800
Rent per month = Rs 25,000
Rent for two years = 25,000 × 12 × 2 = Rs 6,00,000
Amount to be paid after two years = 9,40,800 - 6,00,000 = Rs 3,40,800

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