Amit borrows a sum of Rs8 000 at 10 p a compound interest for 4 years He repays Rs2 800 at the end o...........

Quantitative Aptitude (MTS) Compound Interest

Amit borrows a sum of Rs8,000 at 10% p.a. compound interest for 4 years. He repays Rs2,800 at the end of the first year and

Rs2,600 at the end of the second year. To clear the loan, how much should he pay after 4 years, interest being compounded

yearly?

This questions was previously asked in

SSC MTS 27th October 2021 Shift-2

Rs4,800

Rs4,880

Rs4,840

Rs4,780

- Amit borrows Rs8,000 at 10% compound interest for 4 years.

- At the end of the first year, he pays Rs2,800. His remaining balance is calculated with compound interest on the outstanding amount.

- At the end of the second year, he pays Rs2,600. Again, interest is compounded on any remaining amount.

- To find the amount he needs to pay at the end of 4 years, calculate using compound interest, considering the payments made.

- After calculations, it's found that Amit needs to pay Rs4,840 to clear the loan at the end of 4 years.

- Both compounding interest yearly and previously made payments affect the final amount significantly.

Correct Answer: Option 3, Rs4,840

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