A loan of Rs. 48,800/- is to be paid back in three equal annual instalments. If the rate of
interest is 25% per annum compounded annually, find the instalment.
Answers
Answer:
One installment = 31770
Step-by-step explanation:
Formula Compound interest
A = P[1 +R/100]^N
A - Amount
P - Principle amount
R - Rate of interest
N - Number of years
It is given that,
A loan of Rs. 48,800/- is to be paid back in three equal annual installments. If the rate of interest is 25% per annum compounded annually.
To find the total amount after three year
A = P[1 +R/100]^N
A = 48800[1 + 25/100]^3
= 95312.5
To find the installment
The amount is to be paid back in three equal annual installments.
Therefore one installment = 95312.5/3 = 31770.833 ≈ 31770
Answer:
Instalment = Rs. 25000
Step-by-step explanation:
Suppose each instalment be Rs x
Loan delivered in three equal let say 1st, 2nd and 3rd instalments which are
(4/5)x, (4/5)^2x, (4/5)^3x
so (4/5)x [1 + 4/5 + 16/25] = 48800
Therefore x = 25000
It shows each instalment = Rs. 25000