Liceria & Co.
For Lecture Notes:
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Quant by Ronak Shah
SICI – Installment Problems
FV/PV Formula
x x x x x
p= 1
+ 2
+ 3
+ 4
+ n
r r r r r
1 + 1 + 1 + 1 + 1 +
100 100 100 100 100
Quant by Ronak Shah
Present Value (P.V) / Future Value (F.V) Concept in CI
Find the value after 2 years (i.e. future value) of Rs. 1200 borrowed today @
12% p.a. Compound Interest (Compounded annually).
P.V 1 Year 2 Years
Quant by Ronak Shah
Present Value (P.V) / Future Value (F.V) Concept in CI
Find the Present value of Rs. 34,992 due after 2 years, if the Compound
Interest rate of 8% is reckoned.
P.V 1 Year 2 Years
Quant by Ronak Shah
Find the present value of the payments of ₹8400 to be received at the
end of the first year and ₹8640 to be received at the end of the second
year, if compound interest at 20% p.a. is reckoned.
P.V 1 Year 2 Years
Quant by Ronak Shah
A man borrowed ₹80000 at the rate of 10% p.a. compound interest,
interest being compounded annually. How much amount should he have
repaid at the end of the first year, if by repaying ₹55000 at the end of
the second year he can clear the loan?
A) ₹38000 B) ₹40000 C) ₹45000 D) ₹50000
P.V 1 Year 2 Years
Quant by Ronak Shah
A sum borrowed was repaid through 3 equal annual installment of Rs.
3456. If each installment was paid at the end of the year, starting from
the 1st year, and the Compound Interest rate was 20% p.a., find the sum
borrowed.
P.V 1 Year 2 Years 3 Years
Quant by Ronak Shah
What annual installment will discharge a sum of Rs. 3310 borrowed
today @ 10% p.a. CI, if each installment is paid at the end of year for 3
years? [TITA]
P.V 1 Year 2 Years 3 Years
Quant by Ronak Shah
SICI – Installment Problems
FV/PV Formula
x x x x x
p= 1
+ 2
+ 3
+ 4
+ n
r r r r r
1 + 1 + 1 + 1 + 1 +
100 100 100 100 100
Quant by Ronak Shah
A sum of Rs. 58400 was borrowed at simple interest of 20% p.a., and
repaid in 3 equal annual installments, starting from the end of the first
year. Find the sum borrowed.
P.V 1 Year 2 Years 3 Years
Quant by Ronak Shah
Prasad borrowed a certain sum at simple interest of 50% p.a., and
decided to repay it in 4 annual installments, which were multiples of 100
and also in Geometric progression. If the sum of two of the installments
was Rs. 1500, and the last installment was 8 times the first installment,
what could be the minimum value of the sum borrowed.
P.V 1 Year 2 Years 3 Years 4 Years
Quant by Ronak Shah
Heena borrows Rs. 45,000 from a bank at 10% compound interest. She
repays it in three annual installments that are in arithmetic progression.
If she ends up paying 54000 in total, how much did she pay at the end of
the 1st year?
A Rs. 16,500 B Rs. 19,500 C Rs. 21,000 D Rs. 18,000
P.V 1 Year 2 Years 3 Years
Quant by Ronak Shah
Saluja Planned to buy a car by end of 2015, and hence started depositing
money in her savings account from 1st January 2014. She invested 50,000
in the first year and Rs. 60,000 in the 2nd year. If she had to pay three
installments of Rs. 17280 each for 3 years after buying the car (i.e.
starting from 1st Jan 2017), to clear the loan that she had to take after
making the downpayment through her savings account, and the
Compound Rate of interest (for loan and savings both) of 20% p.a. is
reckoned, find the cost of the Car.
Quant by Ronak Shah
Quant by Ronak Shah
2014 2015 Car 2017 2018 2019
Events:
- Invested Rs. 50,000 on 1st Jan 2014 - Invested Rs. 60,000 on 1st Jan 2015
- Car Bought on 31st Dec 2015 - Loan Taken on 31st Dec 2015
- 3 Installments of Rs. 17280 each for 3 years, starting from 1st Jan 2017
CI - Important
CI after n, n+a, n+2a, …Years….
Quant by Ronak Shah
In the beginning of the year 2014, a person invests a certain amount in
the bank. In the beginning of the year 2017, the accumulated compound
interest is ₹ 18000 and in the beginning of the year 2020, it becomes
₹ 45000. The interest rate is compounded annually and the interest rate
is fixed. The principal amount (in ₹) is ? [TITA]
Quant by Ronak Shah
In the beginning of the year 2007, a person invests a certain amount in
the bank at Half yearly compounding at a fixed interest rate. In the
beginning of the year 2011, the accumulated compound interest is ₹ 6000
and in the beginning of the year 2015, it becomes ₹ 13200. The principal
invested (in ₹) in 2007 was :
Quant by Ronak Shah
Liceria & Co.
For Lecture Notes:
TinyURL.Com/CAT24-Free-Prep
Quant by Ronak Shah
