SarkariPYQ

SSC Selection Post 2020 PYQ — Question 51

SSC Selection Post - Graduation Level 2020 - 9 Nov 2020 - Shift 3 • Quantitative Aptitude • Q51

Back to paper

A loan is to be paid back in two equal annual instalments, each of ₹2,523. If the rate of interest is 16% p.a., compounded yearly, then the total interest paid in this scheme is:

Show answer & explanation

Correct answer: A

Explanation

The correct answer is Option 1 i.e. ₹996.

Principal (P) =X(1+R100)2+X(1+R100)1=\frac{X}{\left(1+\frac{R}{100} \right)^2}+\frac{X}{\left(1+\frac{R}{100} \right)^1}

=2523(1+16100)2+2523(1+16100)1=\frac{2523}{\left(1+\frac{16}{100} \right)^2}+\frac{2523}{\left(1+\frac{16}{100} \right)^1}

= 2523/(1.16)2 + 2523/1.16

= 2175 + 1875

= 4050

Total Repayment = 2 × 2523 = 5046

Total interest = 5046 - 4050 = 996