Question Bank › General Aptitude › Compound Interest › ABC26GN4201ABC26GN4201 · Compound Interest Subject: General Aptitude · Chapter: Compound Interest · Exam: · Marks: · Difficulty:
A man borrows ₹ 12,500 at 20\% compound interest. At the end of every year he pays ₹ 2000 as part repayment. How much does he still owe after three such instalments?
(a) ₹ 12,000
(b) ₹ 12,864
(c) ₹ 15,600
(d) None of these
Answer Explanation Balance $$\begin{aligned} & =₹\left[\left\{12500 \times\left(1+\frac{20}{100}\right)^{3}\right\}-\left\{\begin{array}{r} 2000 \times\left(1+\frac{20}{100}\right)^{2} \\ +2000 \times\left(1+\frac{20}{100}\right)+2000 \end{array}\right\}\right] \\ & =₹\left[\left(12500 \times \frac{6}{5} \times \frac{6}{5} \times \frac{6}{5}\right)-\binom{2000 \times \frac{6}{5} \times \frac{6}{5}}{+2000 \times \frac{6}{5}+2000}\right] \\ & =₹[21600-(2880+2400+2000)]=₹ 14320 . \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.
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