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