Question

Mr Ghazvanid borrowed a loan of Rs 500000 at 12% compounded annually. then how much annual installment he has to pay back loan in 7 years?

Answer 1

$CI = p(1 + \frac{r}{100})^{t} - p \\ \\ \: \: \: \: \: \: = 500000(1 + \frac{12}{100})^{7} - 500000 \\ \\ \: \: \: \: \: \: = 500000( {1.12}^{7}) - 500000 \\ \\ \: \: \: \: \: \: = (500000 \times 2.2106814074061) - 500000 \\ \\ \: \: \: \: \: \: = 1105340.70370305 - 500000 \\ \\ \: \: \: \: \: \: = 605340.7037$