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IPMAT Indore 2026 PYQsShort Answers (Quants). Free, no login required.

Savitri borrowed 10000 rupees from a bank for a period of two years at a fixed interest rate of 10% per annum, compounded semi-annually, and paid back 5025 rupees at the end of first year. Then, the amount, in rupees, to be paid at the end of second year is ___

Entered answer:

Solution

Correct Answer: 6615

Compounded semi-annually means the rate per half-year =5%= 5\%, so the amount grows by factor 1.051.05 each half-year.


Amount after 11 year (22 half-years):

10000×(1.05)2=10000×1.1025=1102510000 \times (1.05)^2 = 10000 \times 1.1025 = 11025 rupees.

After paying 50255025, remaining balance =110255025=6000= 11025 - 5025 = 6000 rupees.


This 60006000 grows for the next 22 half-years:

6000×(1.05)2=6000×1.1025=66156000 \times (1.05)^2 = 6000 \times 1.1025 = 6615 rupees.

Amount to be paid at the end of year 22 is 66156615 rupees.

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