A sum of Rs 10 000 is borrowed at 8 per annum compounded annually If the amount is to be paid in thr...........

Quantitative Aptitude ( CCS) Compound Interest

A sum of Rs. 10,000 is borrowed at 8% per annum compounded annually. If the amount is to be paid in three equal installments, the annual installment will be

3520.25

3880.335

4200.15

4530.225

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Explanation:

Let each installment be x,
10000=x/(1+8/100) + x/(1+8/100)2 + x/(1+8/100)3
10000=x{25/27 + (25/27) 2 + (25/27) 3}
=x*25/27(1 + 25/27 + 625/729)
=25x/27 (2029/729)
x =3880.335

Hence, option 2 is the correct answer.