Question

A loan has to be returned in two equal yearly instalments each of 44100. If the rate of interest is 5% per annum compounded. Find the interest paid ?

Answer 1

Step-by-step explanation:

Given A loan has to be returned in two equal yearly instalments each of 44100. If the rate of interest is 5% per annum compounded.Find the interest paid ?  

• Now the rate of interest is 5% per annum compounded will be
• 44,100 / 1 + 5/100 + 44,100 / (1 + 5 / 100)^2
• = 44,100 / 105 / 100 + 44,100 (105 / 100 )^2
• = 42,000 +   40,000
• = 82,000
• Now loan amount is 2 equal installments = 2 x 44,100 = 88,200
• Therefore interest paid will be 88,200 – 82,000 = Rs 6,200

Reference link will be

https://brainly.in/question/3804901