A loan has to be returned in two equal annual installments .If the rate of interest is 16% per annum compounded annually and each installment is of rs 3364 ,then the loan is of rs
Answers
This is a simple question of installment in compound interest.
Here, Rate of interest = 16/100 = 4/25
Now the amount will be 1 + 4/25 = 29/25
To find the principal amount, for two installments,
(Principal/ Amount) * Installment + (Principal/ Amount)² * Installment
=(25/29) * 3364 + (25/29)² * 3364
=(25/29) * 3364 [ 1 + (25/29) ]
=2900 * 54/29
=5400
Therefore, the amount of loan is of Rs 5400.
Answer:
An Ankita takes a loan of Rs.5000 that has interest rate per years as rate of interest. Thus, it should undergo a best solution for carrying out rs.3250 as amount then how much making time for accessing. It is now taking borrow that has amount of rs.25,000 in 2 years for annual compound interest. The rate must be undergo by considering successive years by 4%.