IPMAT Indore 2026 · Quantitative Ability · Question 6

Step 1 — convert to the compounding period. 10% per annum compounded semi-annually means

\text{rate per half-year}=5\%, \text{periods per year}=2

Step 2 — grow the loan through year 1 (two half-year periods):

10000\times{\left( 1.05 \right)}^{2}=10000\times 1.1025=11025

Step 3 — subtract the repayment.

11025-5025=6000

Step 4 — grow the balance through year 2 (two more periods):

6000\times{\left( 1.05 \right)}^{2}=6000\times 1.1025=6615

Answer: 6615

Shortcut. The repayment of 5025 is chosen so the balance lands on a round 6000 — if your year-1 figure isn’t 11025, you have used 10% instead of 5% per period. After that it is one multiplication by 1.1025.