This question was previously asked in

Telangana Police SI Mains Exam 2016 Official Paper 1

Option 1 : 1,721

Telangana Police SI Preliminary Exam 2018 Official Paper 1

1066

200 Questions
200 Marks
180 Mins

**Given:**

The amount borrowed is Rs. 3,200

Rate is 5% per annum

Time is 2 years

**Formula used:**

A = P{1 + (R/100)}^{T}

Where,

A is Amount

P is Principal

R is Rate

And, T is Time

**Calculations:**

Let each installment be Rs. x

According to the question, we have

A = P{1 + (R/100)}T

P = A/{1 + (R/100)}T

⇒ 3,200 = x/{1 + (5/100)}^{1} + x/{1 + (5/100)}2

⇒ 3,200 = x/(21/20) + x/(441/400)

⇒ 3,200 = 20x/21 + 400x/441

⇒ 3,200 = (420x + 400x)/441

⇒ 3,200 = 820x/441

⇒ x = (3,200 × 441)/820

⇒ x = 1,720.97

⇒ x = Rs. 1,721

**∴ The amount of each installment is Rs. 1,721.**