Question
Riya took a loan of Rs. 36,000 from a cooperative bank and
decided to return it in two equal yearly instalments. If the interest rate is 30% per annum compounded annually, what will be the value of each instalment?Solution
ATQ,
P = x ÷ [1 + (R/100)] + x ÷ [1 + (R/100)]²
So, x ÷ (1.3) + x ÷ (1.3)² = 36,000
⇒ (1.3x + x) ÷ 1.69 = 36,000
⇒ 2.3x ÷ 1.69 = 36,000
⇒ x = 36,000 × (1.69 ÷ 2.3)
⇒ x = 26,460
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