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    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 ?
    A Rs. 1,352/- Correct Answer Incorrect Answer
    B Rs. 1,377/- Correct Answer Incorrect Answer
    C Rs. 1,275/- Correct Answer Incorrect Answer
    D Rs.1,283/- Correct Answer Incorrect Answer

    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

    25x/26 + 625x/676 = 2550
    (650x+625x)/676 = 2550
    1375x/676 = 2550
    x = 2550 `xx` 676/1375 = Rs. 1352

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