Answer:
(c) Rs. 8,310
Step-by-step explanation:
Amount Borrowed: Rs. 10,000
Interest Rate: 10% per annum
Payment Schedule: Paid in 4 equal annual installments
Let's break down the repayment process:
The borrower makes 4 equal annual installments.
After paying two installments, the remaining amount is returned at the end of the third year.
Step-by-Step Calculation:
Calculate Annual Installment:
Since the loan is repaid in 4 equal installments:
Annual Installment
=
10
,
000
4
=
2
,
500
rupees
Annual Installment=
4
10,000
=2,500 rupees
Calculate Compound Interest for 3 years on Rs. 10,000 at 10%:
The compound interest formula is: