A man borrows a sum of Rs1 025 and pays back in two equal yearly instalments If the rate of interest...........

Quantitative Aptitude (CHSL) Compound Interest

A man borrows a sum of Rs1,025 and pays back in two equal yearly instalments. If the rate of interest is 5% p.a, compounded

yearly, then how much is each instalments?

This questions was previously asked in

SSC CHSL 9th June 2022 Shift-3

Rs425.25

Rs525.32

Rs451.32

Rs551.25

- The man borrows Rs1,025, which needs to be repaid with interest.

- The interest rate is 5% per annum, compounded yearly.

- The repayment is split into two equal yearly instalments.

- To find each instalment, use the formula for equivalent instalments for compound interest.

- The amount formula, A = P(1 + r/n)^(nt), where P is the principal, r is the rate, and n is the number of times interest applied.

- Repayment involves compound interest on instalments too.

- Calculation gives instalment amount around Rs551.25.

Option 4: Rs551.25

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