S borrows 5,00,000 to buy a house. If he pays equal instalments for 20 years
and 10% interest on outstanding balance what will be the equal annual instalment?
Answers
Given : S borrows 5,00,000 to buy a house. If he pays equal inst alments for 20 years
and 10% interest on outstanding balance
To Find : equal annual inst alment?
Solution:
P = 5,00,000
R = 10 % interest per annum
n = 20 inst allments
EMI Formula = [P x (R/100) x (1+ (R/100))ⁿ]/[(1+(R/100))ⁿ-1]
equal annual inst alment = [5,00,000 x (10/100) x (1+ (10/100))²⁰]/[(1+(10/100))²⁰-1]
= [5,00,00 x (1.1))²⁰]/[(1.1)²⁰-1]
= [5,00,00 x (1.1))²⁰]/[(1.1)²⁰-1]
= 58,729.8
= 58730 Rs
equal annual inst alment = 58730 Rs
Learn More:
What sum (in Rs) given on loan for two years with scheme of retum ...
brainly.in/question/26745065
What sum (in Rs) given on loan for two years with scheme of retum ...
brainly.in/question/26745065
Php 7,500 payable at the end of each month for 10 years if money is ...
brainly.in/question/30729359