A sum of Rs 13240 is borrowed from a money lender at the rate of 10% p.a. compounded annually. If the amount is to be paid back in three yearly installments , Find the annual installment ?

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Solution

Sum=13240
Rate of interest=10%
Amount after 1 Year $= 13240 (1 + \frac{10}{100})$
$\Rightarrow 13240 \times \frac{110}{100} = R s .14564$
Interest $= 14564 - 13240 = R s .1324$
hence the annual installment=Rs.1324

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A sum of Rs. 12000 is borrowed at $12 %$ p.a. compounded annually which is paid back in 3 equal annual installments. What is the amount of each installment?

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A sum of Rs 13240 is borrowed from a money lender at the rate of 10% p.a. compounded annually. If the amount is to be paid back in three yearly installments , Find the annual installment ?

Sum=13240Rate of interest=10%Amount after 1 Year=13240(1+10100)⇒13240×110100=Rs.14564Interest=14564−13240=Rs.1324hence the annual installment=Rs.1324

Sum=13240
Rate of interest=10%
Amount after 1 Year $= 13240 (1 + \frac{10}{100})$
$\Rightarrow 13240 \times \frac{110}{100} = R s .14564$
Interest $= 14564 - 13240 = R s .1324$
hence the annual installment=Rs.1324