Question

A sum of rupees 550 was taken as a loan this is to be repaid into equal annual installments if rate of interest be 20% compound annually then the value of each installment each

Answer 1

Answer:

360

Explanation:

let x= (rate% annually)

now first yr

p=550

interest=ptr/100=550*0.2=110

beginning of 2nd yr

p=-550+110-x

interest at end of 2nd yr

660-x*0.2=132-0.2x

total installment

2x=559+110+132-0.2x

2x+0.2x=792

x=792/2.2=360