Question

What annual installment will discharge a debt of rs.6900 due in 4 years at 10% per annum compounded annually?

Answer 1

$annual \: interest \\ 6900 \times 10 \div 100 = 690 \\ \\ total \: interest \\ 690 \times 4 = 2760 \\ total \: amount \: payment \: is \\ 6900 + 2760 = 9660 \\ annual \: payment \: is \\ 9660 \div 4 = 2415$