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A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.
- a)Rs. 3100
- b)Rs. 3300
- c)Rs. 3600
- d)Rs. 2690
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 ...
Given:
- Sum borrowed at 20% p.a. compound interest.
- Repayment in 3 annual installments at the end of each year.
- First installment = Rs. 1200
- Second installment = Rs. 1152
- Third installment = Rs. 2592
To find:
- The sum borrowed
Approach:
We can solve this problem using the concept of compound interest.
Let's assume the sum borrowed is 'P'.
Calculation:
First Installment:
- At the end of the first year, the amount to be repaid would have grown by 20%.
- So, the amount to be repaid at the end of the first year = Rs. 1200 + 20% of Rs. 1200 = Rs. 1200 + 0.2 * Rs. 1200 = Rs. 1200 + Rs. 240 = Rs. 1440.
Second Installment:
- At the end of the second year, the amount to be repaid would have grown by 20%.
- So, the amount to be repaid at the end of the second year = Rs. 1152 + 20% of Rs. 1152 = Rs. 1152 + 0.2 * Rs. 1152 = Rs. 1152 + Rs. 230.4 = Rs. 1382.4.
Third Installment:
- At the end of the third year, the amount to be repaid would have grown by 20%.
- So, the amount to be repaid at the end of the third year = Rs. 2592 + 20% of Rs. 2592 = Rs. 2592 + 0.2 * Rs. 2592 = Rs. 2592 + Rs. 518.4 = Rs. 3110.4.
Now, we can form an equation based on the given information:
P + P * 20/100 + P * 20/100 + P * 20/100 = Rs. 1440 + Rs. 1382.4 + Rs. 3110.4
Simplifying the equation:
P + 0.2P + 0.2P + 0.2P = Rs. 1440 + Rs. 1382.4 + Rs. 3110.4
1.6P = Rs. 5932.8
P = Rs. 5932.8 / 1.6
P = Rs. 3708
Therefore, the sum borrowed is Rs. 3708.
Answer:
Hence, option 'B' Rs. 3300 is incorrect. The correct answer is Rs. 3708.
- Sum borrowed at 20% p.a. compound interest.
- Repayment in 3 annual installments at the end of each year.
- First installment = Rs. 1200
- Second installment = Rs. 1152
- Third installment = Rs. 2592
To find:
- The sum borrowed
Approach:
We can solve this problem using the concept of compound interest.
Let's assume the sum borrowed is 'P'.
Calculation:
First Installment:
- At the end of the first year, the amount to be repaid would have grown by 20%.
- So, the amount to be repaid at the end of the first year = Rs. 1200 + 20% of Rs. 1200 = Rs. 1200 + 0.2 * Rs. 1200 = Rs. 1200 + Rs. 240 = Rs. 1440.
Second Installment:
- At the end of the second year, the amount to be repaid would have grown by 20%.
- So, the amount to be repaid at the end of the second year = Rs. 1152 + 20% of Rs. 1152 = Rs. 1152 + 0.2 * Rs. 1152 = Rs. 1152 + Rs. 230.4 = Rs. 1382.4.
Third Installment:
- At the end of the third year, the amount to be repaid would have grown by 20%.
- So, the amount to be repaid at the end of the third year = Rs. 2592 + 20% of Rs. 2592 = Rs. 2592 + 0.2 * Rs. 2592 = Rs. 2592 + Rs. 518.4 = Rs. 3110.4.
Now, we can form an equation based on the given information:
P + P * 20/100 + P * 20/100 + P * 20/100 = Rs. 1440 + Rs. 1382.4 + Rs. 3110.4
Simplifying the equation:
P + 0.2P + 0.2P + 0.2P = Rs. 1440 + Rs. 1382.4 + Rs. 3110.4
1.6P = Rs. 5932.8
P = Rs. 5932.8 / 1.6
P = Rs. 3708
Therefore, the sum borrowed is Rs. 3708.
Answer:
Hence, option 'B' Rs. 3300 is incorrect. The correct answer is Rs. 3708.
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Community Answer
A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 ...
The value of the first installment (at the time the sum was borrowed) = 1200 / 1.2 = 1000
The value of the second installment (at the time the sum was borrowed) = 1152 / (1.2)2 = 800
The value of the third installment (at the time the sum was borrowed) = 2592 / (1.2)3 = 1500
Sum borrowed = Total value (at the time the sum was borrowed) = Rs. 3300.
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A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct answer is option 'B'. Can you explain this answer?
Question Description
A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct 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% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct 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% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct answer is option 'B'. Can you explain this answer?.
A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct 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% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct 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% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct answer is option 'B'. Can you explain this answer?.
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A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A sum was borrowed at 20% p.a. compound interest. It was repaid in 3 annual installments with each installment being paid at the end of a year. The first, second and third installments were Rs. 1200, Rs. 1152 and Rs. 2592 respectively. Determine the sum borrowed.a)Rs. 3100b)Rs. 3300c)Rs. 3600d)Rs. 2690Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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