Meena took a loan of Rs. 8,000 at 10% compound interest per annum for 3 years. She repaid Rs. 4,000 at the end of the 1st year and the rest at the end of the 3rd year. Find the total interest paid by Meena.
Show answer & explanation
Correct answer: D
Explanation
Given:
Principal = ₹8000
Interest rate = 10% per annum
Time = 3 years
Payment at the end of the first year = ₹4000
Amount after the first year = 8000 × (1 + 10/100) = 8800
Payment at the end of the first year
Balance = 8800 − 4000 = 4800
Amount after the second year = 4800 × (1 + 10/100) = 5280
Amount after the third year = 5280 × (1 + 10/100) = 5808
Total payment = 4000 + 5808 = 9808
Total interest = 9808 − 8000 = 1808