Question
A builder borrows Rs. 2,550/- to be paid
back with compound interest at the rate of 4% per annum by the end of 2 years in two equal yearly instalments. How much will each instalment be ?Solution
Let each installment = Rs. x ATQ, `(x)/(1+(R)/(100))` + `(x)/((1+(R)/(100))^2)` = 2550 `(x)/(1+(4)/(100))` + `(x)/((1+(4)/(100))^2)` = 2550
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