1.

1). 11002). 25003). 45104). 3600

Answer»

Let x be the equal installment at the END of one year as the RATE is compounded annually

⇒ Total installment after 2 years = 2x

For 1st year,

⇒ P = 5500, R = 30% and T = 1 year

⇒ Interest = (5500 × 20 × 1)/100 = 1100

At the beginning of 2nd year,

⇒ P = 5500 + 1100 – x

⇒ P = 6600 – x

Interest at the end of 2ND year,

⇒ Interest = [(6600 – x) × 20 × 1]/100 = 1320 – x/5

Hence,

⇒ Total installment = 2x = 5500 + 1100 + 1320 – x/5

⇒ 2x + x/5 = 7920

⇒ x = 3600

∴ The value of each installment is Rs. 3600



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