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Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% interest every year. He also agreed to pay the principal in equal annual instalments over 21 years. After a certain number of years, however, the rate of interest has been reduced to 7%. It is also known that at the end of the agreed period, he will have paid in all Rs.2,70,900 in interest. For how many years does he pay at the reduced interest rate?
- a)10 years
- b)12 years
- c)13 years
- d)14 years
- e)None of the Above
Correct answer is option 'D'. Can you explain this answer?
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Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% inte...
x = interest paid at 7.5%
(21-x) years interest paid at 7%
((180000*x*7.5)/100) + ((180000*7*(21-x))/100) = 270900
x = 7
21 – 7 = 14 years he paid at the reduced interest rate.
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Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% inte...
Problem: Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% interest every year. He also agreed to pay the principal in equal annual instalments over 21 years. After a certain number of years, however, the rate of interest has been reduced to 7%. It is also known that at the end of the agreed period, he will have paid in all Rs.2,70,900 in interest. For how many years does he pay at the reduced interest rate?
Solution:
Let the annual instalment be Rs. x.
Then, the total amount paid in 21 years = 21x
Out of this, the principal amount = Rs. 180,000
Therefore, the total interest paid = 21x - Rs. 180,000
Now, let us assume that the reduced interest rate of 7% is applicable after n years of payment.
Then, the interest paid for n years at 7.5% rate = nx(7.5/100)
The interest paid for remaining (21 - n) years at 7% rate = (21 - n)x(7/100)
Total interest paid = nx(7.5/100) + (21 - n)x(7/100) = Rs.2,70,900
On solving the above equation, we get n = 14 years.
Therefore, Bharat pays at the reduced interest rate for 21 - n = 7 years.
Hence, the correct option is (D) 14 years.
Solution:
Let the annual instalment be Rs. x.
Then, the total amount paid in 21 years = 21x
Out of this, the principal amount = Rs. 180,000
Therefore, the total interest paid = 21x - Rs. 180,000
Now, let us assume that the reduced interest rate of 7% is applicable after n years of payment.
Then, the interest paid for n years at 7.5% rate = nx(7.5/100)
The interest paid for remaining (21 - n) years at 7% rate = (21 - n)x(7/100)
Total interest paid = nx(7.5/100) + (21 - n)x(7/100) = Rs.2,70,900
On solving the above equation, we get n = 14 years.
Therefore, Bharat pays at the reduced interest rate for 21 - n = 7 years.
Hence, the correct option is (D) 14 years.
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Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% interest every year. He also agreed to pay the principal in equal annual instalments over 21 years. After a certain number of years, however, the rate of interest has been reduced to 7%. It is also known that at the end of the agreed period, he will have paid in all Rs.2,70,900 in interest. For how many years does he pay at the reduced interest rate?a)10 yearsb)12 yearsc)13 yearsd)14 yearse)None of the AboveCorrect answer is option 'D'. Can you explain this answer?
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Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% interest every year. He also agreed to pay the principal in equal annual instalments over 21 years. After a certain number of years, however, the rate of interest has been reduced to 7%. It is also known that at the end of the agreed period, he will have paid in all Rs.2,70,900 in interest. For how many years does he pay at the reduced interest rate?a)10 yearsb)12 yearsc)13 yearsd)14 yearse)None of the AboveCorrect answer is option 'D'. 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 Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% interest every year. He also agreed to pay the principal in equal annual instalments over 21 years. After a certain number of years, however, the rate of interest has been reduced to 7%. It is also known that at the end of the agreed period, he will have paid in all Rs.2,70,900 in interest. For how many years does he pay at the reduced interest rate?a)10 yearsb)12 yearsc)13 yearsd)14 yearse)None of the AboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Bharat borrowed Rs.180,000 on a condition that he had to pay 7.5% interest every year. He also agreed to pay the principal in equal annual instalments over 21 years. After a certain number of years, however, the rate of interest has been reduced to 7%. It is also known that at the end of the agreed period, he will have paid in all Rs.2,70,900 in interest. For how many years does he pay at the reduced interest rate?a)10 yearsb)12 yearsc)13 yearsd)14 yearse)None of the AboveCorrect answer is option 'D'. Can you explain this answer?.
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