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Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him is
  • a)
    Rs. 2100
  • b)
    Rs. 2170
  • c)
    Rs. 2000
  • d)
    none of these
Correct answer is 'B'. Can you explain this answer?
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Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, t...
This is the case of simple Ci where Ci = A - pA= P*(1+I)^n A = 5120*(1+ 0.125)^3A = 7290.Ci = 7290 - 5120 = 2170
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Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, t...
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Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, t...
Given:
Principal amount (P) = Rs. 5120
Rate of interest (R) = 12%
Time (T) = 3 years

To find:
Amount of interest paid

Formula used:
Compound Interest (CI) formula: A = P(1 + R/100)ᵀ

Where,
A = Amount at the end of T years
P = Principal amount
R = Rate of interest
T = Time

Calculation:
Using the compound interest formula, we can find the amount at the end of 3 years.

A = P(1 + R/100)ᵀ
A = 5120(1 + 12/100)³
A = 5120(1.12)³
A = 6808.08

Interest paid = Amount at the end of 3 years - Principal amount
= 6808.08 - 5120
= 1688.08

Therefore, the amount of interest paid by Mr. X is Rs. 2170 (rounded off to the nearest rupee).

Hence, option (b) is the correct answer.
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Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him isa)Rs. 2100b)Rs. 2170c)Rs. 2000d)none of theseCorrect answer is 'B'. Can you explain this answer?
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Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him isa)Rs. 2100b)Rs. 2170c)Rs. 2000d)none of theseCorrect answer is 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him isa)Rs. 2100b)Rs. 2170c)Rs. 2000d)none of theseCorrect answer is 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. X borrowed Rs. 5120 at 12 ½ % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him isa)Rs. 2100b)Rs. 2170c)Rs. 2000d)none of theseCorrect answer is 'B'. Can you explain this answer?.
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