Question

(1) borrowed ₹17,200 at 15% per annum, compounded annually. Calculate the value of each instalment​

Answer 1

Answer:

Let the each installment be x

10,000=

1+

1008×+

(1+ 100/8 ) 2x +

(1+100/8 ) 3x

10,000=

108/100 +

(108) /2100 2x

+( 108/100 ) 3 x

10,000=27/25

x+( 27/25 ) 2 x+( 27/25 ) 3

x=2725x

(1+ 27/25

+( 27/25 / 2 )

⇒10,000= 22/25x ( 729/2029)

∴x=3880.335 on simplifying

Answer 2

Step-by-step explanation:

Here, P = Rs.17,200, R = 15 % per annum and (let's assume) tenure of loan, n = 3 years.

Using the formula A = P(1 + R/ 100)ⁿ

Amount after 3 years = 17,200 × (1 + 5/100)³

= 8000 × (21/20 × 21/20 × 21/20)

= 19,911.15 .

Thus, amount after 3 years = 19,911.15

And, compound interest = (19,911.15 - 17,200)

Compound Interest = 2,711.15.

Equated Monthly Installments = 19,911.15/36

Thus, Equated Monthly Installments = 553.08