A man borrows 10500 from a finance company and repays it in two equal annual instalments. If the rate of interest being compounded annually is 10% p.a., then find the value of each instalment.
A
6000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
6050
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
6100
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
6150
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is B 6050 Let the installment be x.
The value of first installment before 1 year =x1+10100=10x11
The value of first installment before 2 years =x(1+10100)2=100x121
The sum of above values should be equal to principal.