Question

A man borrows rs.2550 to be paid back with compound interest at the rate of 4% per annum by the end of 2 years in two equal yearly installments. How much will each installment be?

Answer 1

Explanation:

$a = p {(1 + r \div n)}^{nt } \\ a = 2550(1 + 2 \div 2) ^{2} \\ a = 2550(1 + 1) ^{2} \\ a= 2500(2 )^{2} \\ a= 2550 \times 4 \\ a = 10200$