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John borrowed Rs. 2,10,000 | Quantitative Aptitude - Arithmetic – Installments

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The question below is from previous year CAT question from CAT 2018 exam comes from CAT Installments : John borrowed Rs. 2,10,000 . Find out by answering this question which tests an aspirant’s Quantitative Ability Skills:

CAT 2018 - Slot-1 - Installments - Question-5 - John borrowed Rs. 2,10,000

Q. 5: John borrowed Rs. 2,10,000 from a bank at an interest rate of 10% per annum, compounded annually. The loan was repaid in two equal instalments, the first after one year and the second after another year. The first instalment was interest of one year plus part of the principal amount, while the second was the rest of the principal amount plus due interest thereon. Then each instalment, in Rs., is

Let the amount repaid in each installment was x. So

 

210000×(1.1)^2=x ×1.1+x

 

210000×1.21=2.1x

 

Or x=121000

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