Question

A loan of $Rs.1,00,000$ is to be repaid $3$ equal annual instalments (which include interest $@$ $14\%$ p.a) begning from the end of the first year. Find the instalment amount.

Answer 1

Let the loan of $Rs1,00,000$

Three equal p[payments are of each $Rs33,333.33$ at the interest of $@14\%$

for first installment Total $Rs=33,333.33$

$14\%$ of $33,333.33$ is $\frac{33,333.33}{100}\times 14=4,666.66$

Therefore total amount of first installment is $33,333.33+4,666.66=37,999.99$

Approx $=Rs38,000$