Question

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:

Answer 1

The value of the installment would be 1320

Answer 2

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