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5 years, 1 month ago
5 years ago
Effective compound interest for 2 years at 10% p.a is 21%
Amount after two years = 30000 + 21% of 30000 = 36300
Part payment of 9000 happens
The new principal amount at the beginning of the third year = 27300
At the end of the third year, the total amount would be 27300 + 2730 (which is the 10% interest) = 30030
Ans - Rs.30030/-
Another possibility is that there is a grammatical error. They could also have meant that the person pays 9000 at the end of both the years.
Principal in first year = 30000
Interest in the first year = 3000
Amount at the end of the year = 33000
Part payment at the end of year 1 = 9000
Principal for year 2 = 24000
Interest for year two = 2400
Amount at the end of year two = 26400
Part payment at the end of year two = 9000
Principal for the third year = 17400
Interest for the third year = 1740
Amount to be paid to close the loan = 19140
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