CAT Exam > CAT Questions > A sum was borrowed at 20% compound interest....
Start Learning for Free
A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?
- a)4500
- b)3000
- c)2500
- d)3300
- e)2800
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A sum was borrowed at 20% compound interest. It was repaid in 3 annua...
In this question we need to calculate the present value of all three installments and then add them up to arrive at the total sum that was borrowed.
View all questions of this test
The present value of 1st installment which is paid at the end of 1 year = I1/(1+ r/100)1 = 1200/(1+0.2)1 = Rs 1000
The present value of 2nd installment which is paid at the end of 2nd year = I2/(1+r/100)2 = 1440/ 1.22 = 1000
The present value of 3rd installment which is paid at the end of 3rd year = I3/(1+ r/100)3 = 1728/1.23 = Rs 1000
Therefore, total sum borrowed = 1000 + 1000 + 1000 = Rs 3000
Most Upvoted Answer
A sum was borrowed at 20% compound interest. It was repaid in 3 annua...
Given:
- The sum was borrowed at 20% compound interest.
- It was repaid in 3 annual installments with each installment being paid at the end of the year.
- The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively.
To find: Total amount borrowed.
Approach:
Let us assume that the amount borrowed is 'P'.
Using compound interest formula, we can find out the amount owed after 1 year, 2 years and 3 years respectively, before the installments were paid.
Amount owed after 1 year = P (1 + 20/100) = P (6/5)
Amount owed after 2 years = P (6/5) (6/5) = P (36/25)
Amount owed after 3 years = P (6/5) (6/5) (6/5) = P (216/125)
Now, we can use the given information to form equations and solve for 'P'.
Equation 1: P (6/5) (6/5) (6/5) = 1200 + 1440 + 1728
Simplifying, we get: P = 3000
Therefore, the total amount borrowed is Rs 3000.
Hence, the correct answer is option B.
- The sum was borrowed at 20% compound interest.
- It was repaid in 3 annual installments with each installment being paid at the end of the year.
- The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively.
To find: Total amount borrowed.
Approach:
Let us assume that the amount borrowed is 'P'.
Using compound interest formula, we can find out the amount owed after 1 year, 2 years and 3 years respectively, before the installments were paid.
Amount owed after 1 year = P (1 + 20/100) = P (6/5)
Amount owed after 2 years = P (6/5) (6/5) = P (36/25)
Amount owed after 3 years = P (6/5) (6/5) (6/5) = P (216/125)
Now, we can use the given information to form equations and solve for 'P'.
Equation 1: P (6/5) (6/5) (6/5) = 1200 + 1440 + 1728
Simplifying, we get: P = 3000
Therefore, the total amount borrowed is Rs 3000.
Hence, the correct answer is option B.
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
|
Explore Courses for CAT exam
|
|
Similar CAT Doubts
Top Courses for CATView all
A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer?
Question Description
A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer?.
A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer?.
Solutions for A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT.
Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A sum was borrowed at 20% compound interest. It was repaid in 3 annual installments with each installment being paid at the end of the year. The first, second and third installments were Rs 1200, Rs 1440 and Rs 1728 respectively. Find the total amount borrowed by him?a)4500b)3000c)2500d)3300e)2800Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CAT tests.
|
|
Explore Courses for CAT exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup