Question

A sum of Rs. 8400 was taken as a loan. This is to be repaid
in two equal installments. If the rate of interest is 10%
per annun, compounded annually, then the value of each
installment is.​

Answer 1

Answer:

Step-by-step explanation:

Given  

A sum of Rs. 8400 was taken as a loan. This is to be repaidin two equal installments. If the rate of interest is 10%per annun

Let x be the annual payment.

Then, present worth of x due 1 year + present worth of x due 2 year = 8400

So x / (1 + 10 / 100) ^1 + x / (1 + 10 / 100)^2 = 8400

 So  10 x / 11 + 100 x / 121 = 8400

110 x + 100 x / 121 = 8400

210 x = 8400 x 121

Now x = 8400 x 121 / 210

So x = Rs 4840