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