Question

One person took loan of 50400 rupees with per year compound interest of 10 % per annum.He returned the money in two same amount of installment so 2hat is the amount of per installment?
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Answer 1

Answer:Amount of each Installment  = Rs 29040  if Rs 50400 at rate of 10% per annum paid in two Annual installemnets

Step-by-step explanation:

Machine Price = 50400

rate of  interest = 10 % Per annum

Pay amount in two Equal annual installments

Let say Installment  = E  Rs

Interest for 1 st Yest  = 50400 * 10 * 1 /100  = Rs 5040

Amount paid after 1 year = E  Rs

Amount remained to be paid after 1 Year = 50400 + 5040 - E

= 55440  - E  Rs

Interest for next year  = (55440  - E) * 10 * 1/100 =  0.1(55440  - E)

Amount to be paid = (55440  - E) + 0.1(55440  - E)  = 1.1(55440  - E)

1.1(55440  - E) =  E

=> 2.1E = 1.1 * 55440

=> E = 29040

amount of each Installment  = Rs 29040

or using EMI formula

E =  P * (r/100) * ( 1 + r/100)ⁿ/( ( 1 + r/100)ⁿ - 1))

E = 50400 * (10/100) (1 + 10/100)² /((1 + 10/100)²  - 1)

E = 5040 * 1.1²/(1.1² - 1)

E = 29040‬

installment Amount = Rs 29040

Step-by-step explanation: