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 is Rs. 5,808, then 60% of the total interest (nearest to a Rs.) charge in this scheme is:

Solution (By Examveda Team)

10% = $$\frac{1}{{10}}$$
\[\begin{array}{*{20}{c}} {}&{{\text{Principal}}\,\,\,\,\,\,\,\,\,{\text{Interest}}} \\ {{\text{I}} \to }&{{{10}_{ \times 11 = 110}}\,\,\,\,\,{{11}_{ \times 11 = 121}}} \\ {{\text{II}} \to }&{{{10}^2}_{ = 100}\,\,\,\,\,\,\,\,\,\,{{11}^2}_{ = 121}} \\ {{\text{Total}} \to }&{\overline {\underline {\,210\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,242\,\,\,} } } \end{array}\]
Total interest on sum = 242 - 210 = 32 units
121 units → 5808
1 unit → 48
32 units → 48 × 32 = 1536
Total interest of 60% = 1536 × $$\frac{{60}}{{100}}$$
= Rs. 921.6 ∼ Rs. 922