Question

Mr. Aggarwal buys a house at Rs.30,00,000 for which he agrees to make equal
pàyments at the end of each year for 10 years. If money is wørth 10% p.a., find the
amóunt of each instàlment. [Take (1.1) –10 = 0.3855]

Answer 1

We have ,

• V = Rs.30,00,000 ,
• r = 10% p. a. ,
• n = 10 years.
• A = ?

Using formula

• V = A/r[1 – (1 + r )^{–n} ]

Therefore ,

$\sf{30,00,000 = \dfrac{A}{(10/100)} \bigg[ 1 – {1 + (10/100)^{-10}} \bigg]}$

$\sf{30,00,000= \dfrac{ A}{0.1} \bigg[1 – (1.1)^{-10} \bigg]}$

$\sf{3,00,000 = A [1 – 0.3855] \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: - - - - [As, (1.1) ^{ –10} =0.3855]}$

$\therefore \: \sf{A = \dfrac{3,00,000}{0.6145} = \bf488201.79}$

• Hence , the amount of each instálment is Rs.488201.79 .

Answer 2

We have ,

• We have , V = Rs.30,00,000 ,
• We have , V = Rs.30,00,000 , r = 10% p. a. ,
• We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years.
• We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ?

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formula

• We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ]

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ]

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ] Therefore ,

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ] Therefore , $\sf{30,00,000 = \dfrac{A}{(10/100)} \bigg[ 1 – {1 + (10/100)^{-10}} \bigg]}$

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ] Therefore , $\sf{30,00,000 = \dfrac{A}{(10/100)} \bigg[ 1 – {1 + (10/100)^{-10}} \bigg]}$

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ] Therefore , $\sf{30,00,000 = \dfrac{A}{(10/100)} \bigg[ 1 – {1 + (10/100)^{-10}} \bigg]}$ $\sf{30,00,000= \dfrac{ A}{0.1} \bigg[1 – (1.1)^{-10} \bigg]}$

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ] Therefore , $\sf{30,00,000 = \dfrac{A}{(10/100)} \bigg[ 1 – {1 + (10/100)^{-10}} \bigg]}$ $\sf{30,00,000= \dfrac{ A}{0.1} \bigg[1 – (1.1)^{-10} \bigg]}$$\sf{3,00,000 = A [1 – 0.3855] \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: - - - - [As, (1.1) ^{ –10} =0.3855]}$

We have , V = Rs.30,00,000 , r = 10% p. a. , n = 10 years. A = ? Using formulaV = A/r[1 – (1 + r )^{–n} ] Therefore , $\sf{30,00,000 = \dfrac{A}{(10/100)} \bigg[ 1 – {1 + (10/100)^{-10}} \bigg]}$ $\sf{30,00,000= \dfrac{ A}{0.1} \bigg[1 – (1.1)^{-10} \bigg]}$$\sf{3,00,000 = A [1 – 0.3855] \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: - - - - [As, (1.1) ^{ –10} =0.3855]}$$\therefore \: \sf{A = \dfrac{3,00,000}{0.6145} = \bf488201.79}$

• Hence , the amount of each instálment is Rs.488201.79 .