This question appeared in the XAT 2012 quant section. Question 65.

Question

A man borrows Rs. 6000 at 5% interest, on reducing balance, at the start of the year. If he repays Rs. 1200 at the end of each year, find the amount of loan outstanding, in Rupees, at the beginning of the third year.

A. 3162.75

B. 4125.00

C. 4155.00

D. 5100.00

E. 5355.00

Correct Answer : Choice C. Rs.4155.00

Explanatory Answer

Interest payable @ the end of the first year @ 5% interest on Rs 6000 =

Amount payable @ the end of the first year = Rs 6000 + Rs 300 = Rs 6300

Amount paid @ the end of the first year = Rs 1200

Therefore, Principal for the second year = Rs 6300 – Rs 1200 = Rs 5100

Interest payable @ the end of the second year @ 5% interest on Rs 5100 =

Amount payable @ the end of the second year = Rs 5100 + Rs 255 = Rs 5355

Amount paid @ the end of the second year = Rs 1200

Therefore, Principal for the third year = Rs 5355 – Rs 1200 = Rs 4155

Thus, the amount of loan outstanding at the beginning of the third year = Rs 4155.

Question

A man borrows Rs. 6000 at 5% interest, on reducing balance, at the start of the year. If he repays Rs. 1200 at the end of each year, find the amount of loan outstanding, in Rupees, at the beginning of the third year.

A. 3162.75

B. 4125.00

C. 4155.00

D. 5100.00

E. 5355.00

Correct Answer : Choice C. Rs.4155.00

Explanatory Answer

Interest payable @ the end of the first year @ 5% interest on Rs 6000 =

Amount payable @ the end of the first year = Rs 6000 + Rs 300 = Rs 6300

Amount paid @ the end of the first year = Rs 1200

Therefore, Principal for the second year = Rs 6300 – Rs 1200 = Rs 5100

Interest payable @ the end of the second year @ 5% interest on Rs 5100 =

Amount payable @ the end of the second year = Rs 5100 + Rs 255 = Rs 5355

Amount paid @ the end of the second year = Rs 1200

Therefore, Principal for the third year = Rs 5355 – Rs 1200 = Rs 4155

Thus, the amount of loan outstanding at the beginning of the third year = Rs 4155.

you post help full me nice article you write great stuff keep it up

ReplyDeletehttps://www.facebook.com/epsoninkcoupon

epson ink coupon

Hello Everybody,

ReplyDeleteMy name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

BORROWERS APPLICATION DETAILS

1. Name Of Applicant in Full:……..

2. Telephone Numbers:……….

3. Address and Location:…….

4. Amount in request………..

5. Repayment Period:………..

6. Purpose Of Loan………….

7. country…………………

8. phone…………………..

9. occupation………………

10.age/sex…………………

11.Monthly Income…………..

12.Email……………..

Regards.

Managements

Email Kindly Contact: urgentloan22@gmail.com

Hi, I really like your blog you’ve written very well. I must say you have lot of knowledge about this but I want to suggest you something that if you are looking for Loan Service Provider in India , there is one more website https://helpadya.com/india/Loans www.helpadya.com.

ReplyDeleteXAT Application Form 2017 | XAT 2018 Online Registration Dates : . XLRI will conduct XAT 2017 exam In January 2018. In This exam about 1 lakh candidates will appear.

ReplyDelete