A loan of 21200 is to be returned in two equal annual instalments.if the rate of interest is 12% per annum compounded calculate the value of each instalment
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Amount due at the end of two years
=21200{1 +( 12/100)}^2
=21200(28/25)^2
=(848*28*28)/25
=Rs.26593.28
Therefore, value of each annual installment
26593.28/2
=13296.64
=21200{1 +( 12/100)}^2
=21200(28/25)^2
=(848*28*28)/25
=Rs.26593.28
Therefore, value of each annual installment
26593.28/2
=13296.64
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