Question
A builder borrows Rs.195100 to be paid back with CI at
the rate of 4% per annum in three equal yearly installments. How much will each installment will?Solution
Either you can find annual installment (I) this q by formula, Sum Borrowed (P) = I/(1+R/100) + I/(1+R/100)2 +I/(1+R/100)3 Alternate Method : - Here b : a = (100 + R): 100 = (100 + 4):100 = 26:25 I = P × b 3 /{a (a 2 + b 2 + ab)} = 195100 × 26 3 /(25 x (25 2 + 26 2 + 25 x 26) = 195100 x 17576/(25 x 1951) = Rs. 70304
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