Question

Aditi took a loan of Rs 1,00,000/- at annual rate of 5.2% compounded monthly.

Find her monthly instalment to repay the loan in 10 years if she repays

instalments in beginning of each month and also if she repays in the end of each

month.​

Answer 1

Given data:

Loan amount = Rs. 1,00,000/-

Rate of compound interest = 5.2% per year

Time taken = 10 years

To find:

If there are two instαllments each month, the amount of monthly instαllment paid

Step-by-step explanation:

∴ the amount which is to be paid in 10 years is

= Rs. $100000(1+\frac{5.2}{100\times 12})^{12\times 10}$

= Rs. $100000(1+\frac{5.2}{1200})^{120}$

= Rs. $168013.91$

So Aditi has to pay Rs. 1,68,013.91/- in total.

Let her each instαllment be of Rs. x. Then in a month she paid Rs. 2x (since she paid twice a month).

Thus in 10 years, she paid Rs. (10 × 12 × 2x)

= Rs. (120 × 2x)

According to the question,

120 × 2x = 168013.91

➩ 2x = $\frac{168013.91}{120}$

➩ 2x = 1400.12

Answer:

Her monthly instαllment is Rs. 1,400.12/-