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SSC CGL Model Paper 7

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Question : 60 of 100

Marks: +1, -0

A sum of Rs 420 was taken as a loan. This is to be paid back in two equal installments. If the rate of interest be 10% compound annually, then the value of each installment is

Rs 121
Rs 242
Rs 210
Rs 420

Solution:

Principal = Rs 420

Rate =

10\% = \frac{1}{10} = \frac{1\rightarrow\text{Interest}}{10\rightarrow\text{principal}}

\begin{array}{l|l} \text{Principal} & \text{Installment} \\ \hline 10 \times 11 & 11 \times 11 \\ 100 & 121 \end{array}

→ Installment is same in both the years, so equate the installment, we have

Principal →

110+100=210

Installment →

121+121=242

→ ATQ,

210 units → Rs 420

1 unit → Rs 2

121 units → 2 × 121 = Rs 242

Hence, required value of installment is Rs 242

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