Math, asked by Karanbhutna4192, 1 year ago

A sum of rs. 10,000 is borrowed at 8% per annum compounded annually. if the amount is to be paid in three equal installments, the annual installment will be


a.rs 3520.25b) rs 3880.335c) rs 4200.15d) rs 4530.225e) none

Answers

Answered by Misbah23
6
Option B
Solution: 
Let each installment be x,
10000=x/(1+8/100) + x/(1+8/100)2 + x/(1+8/100)3
10000=x{25/27 + (25/27) 2 + (25/27) 3}
=x*25/27(1 + 25/27 + 625/729)
=25x/27 (2029/729)
x =3880.335
Answered by erinna
1

Answer:

Option B.

Step-by-step explanation:

Formula for annual payment:

P=\dfrac{PV(r)}{1-(1+r)^{-n}}

where,

P is payment.

PV is present value.

r is rate per period.

n is number of periods.

From the given information it is clear that

Present value = 10,000

Rate per period = 0.08

Number of periods = 3

Using the above formula we get

P=\dfrac{10,000(0.08)}{1-(1+(0.08))^{-3}}

P=3880.335

Therefore, the correct option is B.

Similar questions