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    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?
    A Rs. 26,400 Correct Answer Incorrect Answer
    B Rs. 16,460 Correct Answer Incorrect Answer
    C Rs. 26,460 Correct Answer Incorrect Answer
    D Rs. 36,560 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    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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