Question

A loan of Rs 1100 at 6%p.aC.I is to be paid in 3 equal installments. Find the value of each installment​

Answer 1

Thus the value of each installment is 412 Rs

Step-by-step explanation:

Given data:

• P = Rs 1100
• R = 6% = 6/100 = 0.06
• n = 3

Now we have P = A / r (1 – (1 + r)^-n

1100 = A / 0.06 [1 – (1 + 0.06)^-3]

A = 1100 x 0.06 / [1 – (1 + 0.06)^-3]

A = 66 / [1 – (1.06)^-3]

A = 66 / 1 – 1 / 1.19

A = 66 / 1 - 0.84

A = 66 / 0.16

A = 66 / 0.16

A = 410 Rs

Thus the value of each installment is 412 Rs