Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

A person borrowed a sum of ₹30800 at 10% p.a. for 3 years, interest compounded annually. At the end of two years, he paid a sum of ₹13268. At the end of 3rd year, he paid ₹ x to clear of the debt. What is the value of x ?

Options:

26400

26510

26200

26620

Correct Answer:

26400

Explanation:

Amount = Principal × ( 1 + \(\frac{rate }{100}\) )t

Amount to be paid after 2 years = 30800 × ( 1 + \(\frac{10 }{100}\) )2

= 30800 × \(\frac{11 }{10}\) × \(\frac{11 }{10}\) 

= 37268

Paid amount = 13268

Sum left = 37268 - 13268 = 24000

Now , Amount at the end of 3rd year =  24000 × ( 1 + \(\frac{10 }{100}\) )1

= 24000 × \(\frac{11 }{10}\)

= Rs.26400