Question

Anup borrows 7500 at the rate of
20% p.a., interest being compounded annually when interest to repay it in two equal annual instalment, what is the value of each instalment?​

Answer 1

Step-by-step explanation:

the value of each installment is equal to 10000

Answer 2

The value of each installment is Rs 4909

Step-by-step explanation:

Given as :

The principal borrowed = p = Rs 7500

The rate of interest = r = 20%  compounded

The numbers of installments = 2

Let The value of each installment = Rs x

According to question

Amount = principal × $(1+\dfrac{rate}{100})^{time}$

For two equal installment

Rs 7500 × $(1+\dfrac{20}{100})^{2}$  = x × $(1+\dfrac{20}{100})^{1}$ + x

Or, 7500 × $(1.2})^{2}$  =  x × 1.2 + x

Or, 7500 × 1.44  =  x × 1.2 + x

Or, x ( 1.2 + 1 ) = 10800

Or,               x = $\dfrac{10800}{2.2}$

∴                  x = Rs 4909

So, The value of each installment =  x  = Rs 4909

Hence,  The value of each installment is Rs 4909   Answer