A sum was borrowed at 20% p.a. compound interest. It was repaid in three annual instalments with each instalment being paid at the end of an year. The first, second and third instalments were `1200, `1152 and `2592 respectively. Find the sum
Answers
Given : A sum was borrowed at 20% p.a. compound interest.
It was repaid in three annual inst alments with each inst alment being paid at the end of an year.
The first, second and third inst alments were 1200, 1152 and 2592 respectively.
To Find : the sum
Solution:
Let say sum was 100P
SI = P * R * T/100 with in compounding period , SI = CI
Interest for first year = 100P * 20 * 1 /100 = 20P
First Inst allment = 1200
Hence Amount left to be paid = 100P + 20P - 1200
= 120P - 1200
= 120(P - 10)
Interest for second year =120(P - 10) * 20 * 1 /100
= 24(P - 10)
Second Inst allment = 1152
Amount left to be paid = 120(P - 10) + 24(P - 10) -1152
= 144(P - 10) - 1152
= 144(P - 18)
Interest in 3rd year = 144(P - 18) * 20 * 1 /100
= 144(P - 18) ( 1/5)
Total Amount to be paid = 144(P - 18) + 144(P - 18) ( 1/5)
= 144(P - 18) ( 6/5)
Amount paid in 3rd inst allment = 2592
144(P - 18) ( 6/5) = 2592
=> P - 18 = 15
=> P = 33
=> 100P = 3300
Sum was Rs 3300
Verification
Initial Amount Interest Inst allment Left
3300 660 1200 2760
2760 552 1152 2160
2160 432 2592 0
Learn More :
if the difference between the ci and si for 2 years at 12 percentage
brainly.in/question/11868846
1. Find the difference between C.I and S.I on 5000 for 1 year at 2
brainly.in/question/13187389