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)?
- A. ₹ 4,437 ✓
- B. ₹ 4,237
- C. ₹ 4,021
- 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.
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