CAT 2023 Interest Question (Hard)

Question

Anil borrows Rs 2 lakhs at an interest rate of 8 per annum, compounded half-yearly. He repays Rs 10320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year. Then, the total interest, in rupees, paid over the three years is nearest to

Accepted Answer

Step 1 Principal borrowed 2,00,000 rupees Interest rate 8 percent per annum, compounded half-yearly So, interest rate per half-year 4 percent Number of half-yearly periods in 3 years 6 Step 2 Amount after 1 year 2 periods using compound interest Amount equals 2,00,000 multiplied by 1.04 squared 1.04

CAT 2023

Quantitative

Interest

Hard

Anil borrows Rs 2 lakhs at an interest rate of 8% per annum, compounded half-yearly. He repays Rs 10320 at the end of the first year and closes the loan by paying the outstanding amount at the end of the third year. Then, the total interest, in rupees, paid over the three years is nearest to

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