Defence Exam > Defence Questions > A person borrows Rs. 6000 from a co-operative...
Start Learning for Free
A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?
- a)Rs. 1403.765
- b)Rs. 2688.672
- c)Rs. 3878.4
- d)Rs. 4980
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A person borrows Rs. 6000 from a co-operative bank at 8% compound inte...
GIVEN:
Principal = Rs. 6000
Rate of Compound Interest = 8%
Principal = Rs. 6000
Rate of Compound Interest = 8%
FORMULA USED:
Amount left after each Installment = P(1 + (R/100)) – Monthly installment
Amount left after each Installment = P(1 + (R/100)) – Monthly installment
CALCULATION:
Amount left after 1st installment = 6000(1 + (8/100)) – 1500 = 6480 – 1500 = 4980
Amount left after 1st installment = 6000(1 + (8/100)) – 1500 = 6480 – 1500 = 4980
Amount left to pay after 2nd installment = 4980(1 + (8/100)) – 1500 = 5378.4 – 1500 = 3878.4
Amount left to pay after 3rd installment = 3878.4(1 + (8/100)) – 1500 = 4188.672 – 1500 = 2688.672
Amount left to pay after 4th installment = 2688.672(1 + (8/100)) – 1500 = 2903.765 – 1500 = 1403.765
∴ Amount left to be paid = Rs. 1403.765
∴ Amount left to be paid = Rs. 1403.765
Most Upvoted Answer
A person borrows Rs. 6000 from a co-operative bank at 8% compound inte...
Given:
- Principal amount (P) = Rs. 6000
- Rate of interest (R) = 8% or 0.08 (as a decimal)
- Amount paid at the end of every year (A) = Rs. 1500
To find:
The amount still owed to the co-operative bank after four installments.
Solution:
1. Calculation of Interest:
The interest for the first year can be calculated using the compound interest formula:
I = P(1 + R)^n - P
where I is the interest, P is the principal amount, R is the rate of interest, and n is the number of years.
Substituting the given values:
I1 = 6000(1 + 0.08) - 6000
I1 = 480
Similarly, the interest for the second, third, and fourth years can be calculated as:
I2 = (6000 - A)(1 + R) - (6000 - A)
I3 = (6000 - 2A)(1 + R) - (6000 - 2A)
I4 = (6000 - 3A)(1 + R) - (6000 - 3A)
2. Calculation of Remaining Loan Amount:
The remaining loan amount after the first year is:
Loan1 = P + I1 - A
Loan1 = 6000 + 480 - 1500
Loan1 = 4500
Similarly, the remaining loan amount after the second, third, and fourth years can be calculated as:
Loan2 = Loan1 + I2 - A
Loan3 = Loan2 + I3 - A
Loan4 = Loan3 + I4 - A
3. Calculation:
Substituting the calculated values:
Loan2 = 4500 + (6000 - 1500)(1 + 0.08) - (6000 - 1500)
Loan2 = 4500 + 360 - 4500
Loan2 = 4860
Loan3 = 4860 + (6000 - 2 * 1500)(1 + 0.08) - (6000 - 2 * 1500)
Loan3 = 4860 + 240 - 4500
Loan3 = 2760
Loan4 = 2760 + (6000 - 3 * 1500)(1 + 0.08) - (6000 - 3 * 1500)
Loan4 = 2760 + 120 - 4500
Loan4 = 1380
Therefore, the person still owes Rs. 1380 to the co-operative bank after four installments.
- Principal amount (P) = Rs. 6000
- Rate of interest (R) = 8% or 0.08 (as a decimal)
- Amount paid at the end of every year (A) = Rs. 1500
To find:
The amount still owed to the co-operative bank after four installments.
Solution:
1. Calculation of Interest:
The interest for the first year can be calculated using the compound interest formula:
I = P(1 + R)^n - P
where I is the interest, P is the principal amount, R is the rate of interest, and n is the number of years.
Substituting the given values:
I1 = 6000(1 + 0.08) - 6000
I1 = 480
Similarly, the interest for the second, third, and fourth years can be calculated as:
I2 = (6000 - A)(1 + R) - (6000 - A)
I3 = (6000 - 2A)(1 + R) - (6000 - 2A)
I4 = (6000 - 3A)(1 + R) - (6000 - 3A)
2. Calculation of Remaining Loan Amount:
The remaining loan amount after the first year is:
Loan1 = P + I1 - A
Loan1 = 6000 + 480 - 1500
Loan1 = 4500
Similarly, the remaining loan amount after the second, third, and fourth years can be calculated as:
Loan2 = Loan1 + I2 - A
Loan3 = Loan2 + I3 - A
Loan4 = Loan3 + I4 - A
3. Calculation:
Substituting the calculated values:
Loan2 = 4500 + (6000 - 1500)(1 + 0.08) - (6000 - 1500)
Loan2 = 4500 + 360 - 4500
Loan2 = 4860
Loan3 = 4860 + (6000 - 2 * 1500)(1 + 0.08) - (6000 - 2 * 1500)
Loan3 = 4860 + 240 - 4500
Loan3 = 2760
Loan4 = 2760 + (6000 - 3 * 1500)(1 + 0.08) - (6000 - 3 * 1500)
Loan4 = 2760 + 120 - 4500
Loan4 = 1380
Therefore, the person still owes Rs. 1380 to the co-operative bank after four installments.
|
Explore Courses for Defence exam
|
|
A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer?
Question Description
A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? for Defence 2024 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Defence 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer?.
A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? for Defence 2024 is part of Defence preparation. The Question and answers have been prepared according to the Defence exam syllabus. Information about A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Defence 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer?.
Solutions for A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Defence.
Download more important topics, notes, lectures and mock test series for Defence Exam by signing up for free.
Here you can find the meaning of A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A person borrows Rs. 6000 from a co-operative bank at 8% 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 co-operative bank after four such installments?a)Rs. 1403.765b)Rs. 2688.672c)Rs. 3878.4d)Rs. 4980Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Defence tests.
|
|
Explore Courses for Defence exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup