Question

25. A person borrows R$ 8,000 at 2.76%
simple interest per annum. The principal
and the interest are to be paid in the 10
monthly instalments, if each instalment is
double the preceding one, find the value
of the first and the last instalment. (#)(€)
a) Rs.8, R8,4096 b) Rs.8, Rs.2048
6) Rs 4, Rs 4096 d) None
​

Answer 1

Answer:

Principal and interest after 8 months

=8000(1+0.0276/12*10)=8184

Let a=initial repayment amount (n=1), then the repayment amount at month n

a(n)=a*r^(n-1) where r=2

Total repayment amount

Sum=a(1)+a(2)+...+a(10)

=a(r^10-1)/(r-1)

=1023a

Equate total amount owing with amount paid:

8184=1023a

Solve for a.