A loan is to be returned in two equal yearly instalments...

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A loan is to be returned in two equal yearly instalments. If the rate of interest is 10% p.a., compounded annually, and each instalment if Rs. 5,808, then the total interest charged in this scheme is:

A. Rs. 1,563

B. Rs. 1,536

C. Rs. 1,632

D. Rs. 1,602

Answer: Option B

Solution (By Examveda Team)

$$\eqalign{ & 5808 \times \frac{{10}}{{11}} \times \frac{{21}}{{11}} \cr & {\text{Principal}} = 10080 \cr & {\text{Amount}} = 5808 \times 2 = 11616 \cr & {\text{Interest}} = 1536 \cr} $$

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