Question

In January 2005, a farmer takes a loan of Rs. 2 Lakhs at the rate of 10% compound interest,
compounded annually at the beginning of every year. He manages to pay Rs. 50,000 at the
end of every year. The number of years required for the farmer to completely pay off the
loan is:

Answer 1

It needs at least 5.8564 years for the farmer to completely pay off the lone.