Question

Three equal installment, each of rs 200, were paid at the end of year on a sum borrowed at 20% compound interest compounded annually. Find the sum.

Answer 1

Don't know answer but aatached are solutions

Answer 2

Answer:

Rs.421.29

Step-by-step explanation:

Installment per year = 200

Time = 3 years

Total Installment of 3 years = 200*3 = 600

So, Amount = 600

Let principal be x

Rate of interest = 20% =0.2

$x(1+0.2)^3=200(1+0.2)^2+200(1+0.2)^1+200(1+0.2)^0$

$1.728x=728$

$x=\frac{728}{1.728}$

$x=421.29$

Hence the sum is Rs.421.29