Question

Case study II A man took a loan of Rs 500 for which he has started paying the installment . The first installment he paid of Rs 100 . Later on he wishes to increases the installment by Rs 5 every month , in that case (i) What amount he will pay in the 30th installment ? (ii) What amount of money he paid in total ? *​

Answer 1

Answer:

Here, V=Rs.30000,r=12%=0.12 and n=20.

We know V=

r

A

[1−(1+r)

−n

]

Thus 30000=

0.12

A

[1−(1+0.12)

−20

]

⇒ A=

[1−(1+0.12)

−20

]

30000×0.12

⇒ A=

[1−(1.12)

−20

]

3600

⇒ A= Rs. 4016.76