Vijaya and her friend took a loan of Rs. 42,000 to buy a boat. They paid back in equal monthly installment a total of Rs. 47040 in two years. How much did they pay back every month?

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CTET Paper 1 - 12th Jan 2022 (English-Hindi-Sanskrit)
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  1. Rs. 1750
  2. Rs. 2356
  3. Rs. 1960
  4. Rs. 3920 

Answer (Detailed Solution Below)

Option 3 : Rs. 1960
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Detailed Solution

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Given: 

Principal = 42,000

Paid after installment = 47040 

Time = 2 years = 24 months 

Calculation: 

Vijaya and her friend took a loan for two years and installment are equal monthly.

The total amount paid back by Vijaya and her friend  in 2 years = 47040 

The amount they paid every month =  47040 / 24 = 1960 

∴  They paid back Rs.1960 every month. 

∴ Option 3 is correct.

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