Question

A man borrowed some money and returned it in 3 equal quarterly installments of Rs 4630.50 each. Find also the interest charged.

• A. $1281.50$
• B. $1291.50$
• C. $1181.50$
• D. $1381.50$

Answer 1

Answer: (A)

$1281.50$

$\Rightarrow$ Here, we have $A=Rs.4630.50,n=3$ and $r=\frac{20}{100}\times \frac{1}{4}=0.05$

$\Rightarrow$ $V=\frac{A}{r}\times [1-(1+r{)}^{-n}]$

$\Rightarrow$ $V=\frac{4630.50}{0.05}\times [1-(1.05{)}^{-3}]$

$\Rightarrow$ $V=Rs.12610$

$\Rightarrow$ Now, Total money repaid = $3\times Rs.4630.50=Rs.13891.50$

$\therefore$ Interest paid = $Rs.13891.50-Rs.12610=Rs.1281.50$