Question

A sum of Rs 550 was taken as a loan. This is to be paid back in two equal instalments. If the rate of interest be 20% compounded annually, then the amount of each instalment will be

• A. Rs 360
• B. Rs 350
• C. Rs 340
• D. Rs 300

Answer 1

Answer: (A)

Rs 360

Let x be the each instalment.
$\therefore \frac{x}{(1+\frac{20}{100})}+\frac{x}{{(1+\frac{20}{100})}^2}=550$
$⟹\frac{5}{6}x+\frac{25}{36}x=550⟹x=Rs360$