A man borrows $R s 1820$ and undertakes to payback with a compound interest of $20 %$ per annum in a $3$ equal yearly installments at the end of first year, second year and third year. Find the amount of each installments

864

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800

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900

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820

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Solution

The correct option is A $864$
Each Installment = $\frac{P \cdot r}{100 [1 - {\frac{100}{100 + r}}^{n}]}$
here $P = R s 1820$
$r = 0.2$
$n = 3$
solving gives $I n s t a l l m e n t = 864 R s$

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A man borrows Rs 1820 and undertakes to payback with a compound interest of 20% per annum in a 3 equal yearly installments at the end of first year, second year and third year. Find the amount of each installments

The correct option is A 864Each Installment = P⋅r100[1−{100100+r}n]here P=Rs1820r=0.2n=3solving gives Installment=864Rs

A man borrows $R s 1820$ and undertakes to payback with a compound interest of $20 %$ per annum in a $3$ equal yearly installments at the end of first year, second year and third year. Find the amount of each installments

The correct option is A $864$
Each Installment = $\frac{P \cdot r}{100 [1 - {\frac{100}{100 + r}}^{n}]}$
here $P = R s 1820$
$r = 0.2$
$n = 3$
solving gives $I n s t a l l m e n t = 864 R s$