A sum of Rsx was borrowed and paid back in two equal yearly instalments each of Rs35 280 If the rate...........

Quantitative Aptitude (CGL) Compound Interest

A sum of Rsx was borrowed and paid back in two equal yearly instalments, each of Rs35,280. If the rate of interest was 5%,

compounded annually, then the value of x is:

This questions was previously asked in

SSC CGL 7 June 2019 Shift-2

64,400

65,600

64,800

65,400

Let’s break down what’s really going on with this instalment question:

- You take out a loan of Rs x. You pay it back in two equal yearly instalments of Rs 35,280 each.

- The interest rate is 5% per year, compounded annually.

- The present value of those two payments is what you originally borrowed. So, the formula looks like this:

- x = 35,280 / (1.05) + 35,280 / (1.05)^2

- Crunching the numbers:

- 1.05² = 1.1025

- First year: 35,280 / 1.05 = 33,600

- Second year: 35,280 / 1.1025 = 32,000

- Add those up: 33,600 + 32,000 = 65,600

- Here’s what that tells you about the options:

- 64,400 (Too low, doesn’t add up)

- 65,600 (Bingo, this fits the calculation exactly)

- 64,800 (Still too low)

- 65,400 (Close, but not quite)

Submit Error