Question

If a sum of Rs.13040 is to be paid back in two equal annual installments at 33/4 % p.a What is the amount of each installment approximately?

Answer 1

Answer

The amount of each installment = Rs 7058

Explanation

It is given that,

A sum of Rs.13040 is to be paid back in two equal annual installments at 33/4 % p.a

To find the 33/4% of Rs. 13040

33/4% of total amount = [(33/4) x 13040]/100 = 1075.8

Therefor total amount is to paid back = 13040 + 1075.8=14115.8

The amount paid back in two installment

Each installment  =14115.8/2 =  7057.9 ≈ Rs. 7058

Answer 2

Sum = Rs 13,040

Interest = 33/4 %

Find the interest:

Interest = (33/4 ÷ 100 ) x 13400 = Rs 1075.80

Find the total sum payable:

Total sum = 13,040 + 1075.80 = Rs 14,115.80

Find each instalment amount:

One instalment = 14115.80 ÷ 2 = Rs 7057.90

Answer: Each instalment is Rs 7057.90