Question

A company borrows Rs. 10000 on condition to repay it with compound interest at 5% p.a by annual instalments of Rs. 1000 each. The number of vears by which the debt will be clear is

Answer 1

Answer:

company borrows 10000

int on loan is=500 per year

intstallment paid by company=1000per year

how many times take for payment=10000÷1000=10years

actually company paying int with installment.so,actuall amount company pays is=1000+500=1500

in 10 years company actually pay = 1500×10=15000.