Question

Rs. $5,000$ is paid every year for ten years to pay off a loan. What is the loan amount if interest rate be $14\%$ p.a. compounded annually?$\left[P\right(10,0.14\left)5.21611\right]$

• A. Rs. $26,008.55$
• B. Rs. $26,080.55$
• C. Rs. $20,680.55$
• D. Rs. $26,808.55$

Answer 1

Answer: (B)

Rs. $26,080.55$

$V=A.P.(n,i)$
Here $A=$ Rs. $5,000$
$n=10$
$i=0.14$
$V=5,000\times P(10,0.14)$
$=5,000\times 5.21611=$Rs. $26,080.55$
Therefore the loan amount is Rs. $26,080.55$