A man, borrow Rs 21000 at 10% compound interest. How much he has to pay annually at the end of each year, to settle his loan in two years ?
A. Rs. 12000
B. Rs. 12100
C. Rs. 12200
D. Rs. 12300
Answer: Option B
Solution(By Examveda Team)
$$\eqalign{ & {\text{Rate }} \Rightarrow {\text{ 10% = }}\frac{1}{{10}} \cr & {\text{Each installment of 2 years}} \cr & \Rightarrow \frac{{10}}{{11}} \times \frac{{\left( {10 + 11} \right)}}{{11}} \times {\text{ Installment = P}}{\text{.A}} \cr & {\text{P}}{\text{.A = 21000}} \cr & {\text{Each installment = 12100}} \cr} $$Related Questions on Compound Interest
A. Rs. 120
B. Rs. 121
C. Rs. 122
D. Rs. 123
E. None of these
A. 625
B. 630
C. 640
D. 650
E. None of these
A. Rs. 2160
B. Rs. 3120
C. Rs. 3972
D. Rs. 6240
E. None of these
A. Rs. 2.04
B. Rs. 3.06
C. Rs. 4.80
D. Rs. 8.30
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