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Aptitude · Q142

Compound Interest

Competitive Exams · Aptitude · question 142

Q142

A sum of Rs. 4,620 is to be paid back in 2 equal annual instalments. How much is each instalments (in Rs.) if the interest is compounded annually at 10% per annum?

A.
2,420
B.
2,552
C.
2,662
Answer
D.
2,750

Answer: Option C

Solution

Answer: Option C
Solution:

\begin{array}{*{20}{c}} {{\text{Principal}}}&{{\text{Instalments}}} \\ {110 = 10 \times 11}&{11 \times 11 = 121} \\ {100 = 100}&{121} \\ \begin{gathered} 210 \hfill \\ \,\,\,\,\,{ \downarrow ^{ \times 22}} \hfill \\ \end{gathered} &\begin{gathered} \hfill \\ \,\,\,\,\,{ \downarrow ^{ \times 22}} \hfill \\ \end{gathered} \\ {4620}&{{\text{Rs}}{\text{. }}{\mathbf{2662}}} \end{array}