Compound Interest Practice Test 1

Question : 38 of 40

Marks: +1, -0

A man borrows Rs 6,000 at 10% compound rate of interest. He pays back Rs 2,000 at the end of each year to clear his debt. The amount that he should pay to clear all his dues at the end of the third year is:

Rs 6,000
Rs 3,366
Rs 3,060
Rs 3,066

Validate

Solution:

P = 6,000 R = 10% T = 1 year

SI={6000×10×1}/100=600

Amount = 6,000 + 600 = Rs 6,600
Amount paid in the first year = Rs 2,000
Amount paid in the second year = Rs 4,600

SI={4600×10×1}/100=460

Amount paid in the second year = 4,600 + 460 = Rs 5,060
Paid amount = Rs 2,000
Money left = 5,060 - 2,000 = Rs 3,060
In the third year he should pay Rs 3,060 to clear all his dues

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