A sum of rs. 6600 was taken as a loan. this is to be repaid in two equal annual instalments. if the rate of interest be 20% compounded annually then the value of each instalment is:
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The value of the installment would be 1320
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Step-by-step explanation:
Use the formula of emi
P = r X A / [ 1 - ( 1 + r) -n ]
where P = payment amount
A = loan amount
r = rate of interest (compounded)
N = no. of payments
ROI is compounded is
Monthly r = i / 1200 , N = n X 12
Quarterly= i / 400 , N = n X 4
Half yearly = i / 200 ,N = n X 2
Yearly = i / 100 , N = n
P = r X A / [ 1 - ( 1 + r) -n ]
by Putting the values we get,
[ 20/ 100 X 6600 ] / [ 1- ( 1+ 20 / 100) -n ]
1320 / ( 1- [ 6/5] -2)
1320 X 36 / 11
= 4320
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