Compound Interest Practice Test 2

Question : 30 of 40

Marks: +1, -0

Mrs Sudha borrowed Rs 12,000 at 6% p.a. compound interest from her brother. She repaid Rs 5,720 and 7,300 at the end of the first year and second year. Find the amount she has to pay at the end of the third year if she has to discharge the loan and her brother has reduced the rate from 6% to 4% after the first year.

Rs 1,780
Rs 2,870
Rs 5,480
None of these
Cannot be determined

Validate

Solution:

Total amount to be paid at the end of the first year

=12,000(1+6/100)

=12,000×106/100=12,720

Balance to be paid after the first year = 12,720 - 5,720 = 7,000
Total amount after the first year

= 7,000 (1+4/100)

=7,000×26/25=7280

She paid Rs 7,300 at the end of the second year and no balance is left.
So, she has discharged her loan at the end of the second year

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