Question

An overdraft of Rs. 50,000 to be paid back in equal annual installments over a period of 20 years. Find

the value of Installment, if interest is compounded annually at 14% per annum.​

Answer 1

Step-by-step explanation:

amount of installment before intrest =50000/20 =₹2500

first year interest= 50000×14%=7000

first year installment=2500+7000 =9500

second year interest = (50000-2500) ×14%=6650

second year installment=2500+6650=9150

like this find the installment of all future years