Rajnish borrowed ₹1,500 from a bank and repaid the entire amount with interest in two equal annual installments, the first installment being paid a ye...

Question

Rajnish borrowed ₹1,500 from a bank and repaid the entire amount with interest in two equal annual installments, the first installment being paid a year after Rajnish borrowed from the bank. If the rate of interest was 40% per annum, compounded annually, then what was the value (in ₹) of each installment paid by Rajnish?

Options

A.

₹1125

B.

₹1470

C.

₹1225

D.

₹1350

interestinstallmentscompound interestpresent valueloan repayment

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