The calculation involves the present value of an ordinary annuity formula to find the installment amount, and then calculating the total interest paid as the total of installments minus the principal. Precision in calculations is crucial.
A man borrows Rs. 32,445 at compound interest and pays back it in three equal, half- yearly installments. If the rate of interest is 13 % per annum, compounded half-yearly, then what is the total interest paid?
Asked in GPSC Prelims CSP 1 2023 · Topic: Money & Banking (Money: Functions, Forms, and Measures of Money Supply)
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