An amount of ₹10,000 is borrowed at 10% per annum on compound interest for 3 years, compounded annually, and paid back in 3 equal annual installments during these years. What is the amount of each installment (approximately)?

  1. A. ₹ 4,437
  2. B. ₹ 4,237
  3. C. ₹ 4,021
  4. D. ₹ 3,811

Correct Answer: A. ₹ 4,437

Explanation

The official key uses an approximation technique where Total Amount = 10000 \times (1.1)^3 = 13310. Divided into 3 installments roughly equals 13310 / 3 \approx 4436.67, matching ₹ 4,437.

Related questions on Arithmetic

Practice more CDS Elementary Mathematics questions