Question

Rajiv lend out 9 to Anni on condition
that the amount is payable in 10 months by 10 equal installments of 1 each payable at the start of every month. What is the rate of interest per annum if the first instalment has to be paid one month from the date the loan is availed.​

Answer 1

Answer:

hló mate here is your answer

The amount payable per month is 1

We analyze this as follows.

Let the interest rate be i.

We analyze this as follows :

Let x be the amount paid monthly.

Let L be the amount of loan.

The formula is :

L = X(1 + i)

Doing the substitution :

9 = 1(1 + i)^ 10

9^ (1/10= = 1 + i

1.2457 = 1 + i

i = 1.2457 - 1

i = 0.2457

i = 0.2457 × 100%

= 24.57%