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A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?
- a)Rs. 123.25
- b)Rs. 125
- c)Rs. 400
- d)Rs. 469.18
- e)None of these
Correct answer is option 'A'. Can you explain this answer?
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Given:
Principal (P) = Rs. 4000
Rate of interest (R) = 15/2% = 7.5%
Time (n) = 3 years
Repayment per year = Rs. 1500
Calculation:
1. Calculate the interest for the first year:
Interest for the first year = P * (1 + R/100)^n - P = 4000 * (1 + 7.5/100)^1 - 4000 = Rs. 300
2. Calculate the amount repaid in the first year:
Amount repaid in the first year = Rs. 1500
3. Calculate the remaining loan amount after the first year:
Remaining loan amount after the first year = P + Interest for the first year - Amount repaid in the first year
= 4000 + 300 - 1500 = Rs. 2800
4. Calculate the interest for the second year:
Interest for the second year = Remaining loan amount after the first year * (1 + R/100)^n - Remaining loan amount after the first year
= 2800 * (1 + 7.5/100)^1 - 2800 = Rs. 210
5. Calculate the amount repaid in the second year:
Amount repaid in the second year = Rs. 1500
6. Calculate the remaining loan amount after the second year:
Remaining loan amount after the second year = Remaining loan amount after the first year + Interest for the second year - Amount repaid in the second year
= 2800 + 210 - 1500 = Rs. 1510
7. Calculate the interest for the third year:
Interest for the third year = Remaining loan amount after the second year * (1 + R/100)^n - Remaining loan amount after the second year
= 1510 * (1 + 7.5/100)^1 - 1510 = Rs. 113.25
8. Calculate the amount repaid in the third year:
Amount repaid in the third year = Rs. 1500
9. Calculate the remaining loan amount after the third year:
Remaining loan amount after the third year = Remaining loan amount after the second year + Interest for the third year - Amount repaid in the third year
= 1510 + 113.25 - 1500 = Rs. 123.25
Therefore, the man still owes Rs. 123.25 to the bank after three instalments.
Hence, the correct answer is option A.
Principal (P) = Rs. 4000
Rate of interest (R) = 15/2% = 7.5%
Time (n) = 3 years
Repayment per year = Rs. 1500
Calculation:
1. Calculate the interest for the first year:
Interest for the first year = P * (1 + R/100)^n - P = 4000 * (1 + 7.5/100)^1 - 4000 = Rs. 300
2. Calculate the amount repaid in the first year:
Amount repaid in the first year = Rs. 1500
3. Calculate the remaining loan amount after the first year:
Remaining loan amount after the first year = P + Interest for the first year - Amount repaid in the first year
= 4000 + 300 - 1500 = Rs. 2800
4. Calculate the interest for the second year:
Interest for the second year = Remaining loan amount after the first year * (1 + R/100)^n - Remaining loan amount after the first year
= 2800 * (1 + 7.5/100)^1 - 2800 = Rs. 210
5. Calculate the amount repaid in the second year:
Amount repaid in the second year = Rs. 1500
6. Calculate the remaining loan amount after the second year:
Remaining loan amount after the second year = Remaining loan amount after the first year + Interest for the second year - Amount repaid in the second year
= 2800 + 210 - 1500 = Rs. 1510
7. Calculate the interest for the third year:
Interest for the third year = Remaining loan amount after the second year * (1 + R/100)^n - Remaining loan amount after the second year
= 1510 * (1 + 7.5/100)^1 - 1510 = Rs. 113.25
8. Calculate the amount repaid in the third year:
Amount repaid in the third year = Rs. 1500
9. Calculate the remaining loan amount after the third year:
Remaining loan amount after the third year = Remaining loan amount after the second year + Interest for the third year - Amount repaid in the third year
= 1510 + 113.25 - 1500 = Rs. 123.25
Therefore, the man still owes Rs. 123.25 to the bank after three instalments.
Hence, the correct answer is option A.
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A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?a)Rs. 123.25b)Rs. 125c)Rs. 400d)Rs. 469.18e)None of theseCorrect answer is option 'A'. Can you explain this answer?
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A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?a)Rs. 123.25b)Rs. 125c)Rs. 400d)Rs. 469.18e)None of theseCorrect answer is option 'A'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?a)Rs. 123.25b)Rs. 125c)Rs. 400d)Rs. 469.18e)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?a)Rs. 123.25b)Rs. 125c)Rs. 400d)Rs. 469.18e)None of theseCorrect answer is option 'A'. Can you explain this answer?.
A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?a)Rs. 123.25b)Rs. 125c)Rs. 400d)Rs. 469.18e)None of theseCorrect answer is option 'A'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?a)Rs. 123.25b)Rs. 125c)Rs. 400d)Rs. 469.18e)None of theseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man borrows Rs. 4000 from a bank at 15/2% compound interest. At the end of every year, he pays Rs. 1500 as part repayment of loan and interest. How much does he still owe to the bank after three such instalments?a)Rs. 123.25b)Rs. 125c)Rs. 400d)Rs. 469.18e)None of theseCorrect answer is option 'A'. Can you explain this answer?.
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