InterviewSolution
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A loan of Rs. 16,550 has to be paid in three equal installments at compound interest. Calculate the value of annual installment if the rate of interest is 10% per annum.1. Rs. 66562. Rs. 12433. Rs. 66554. Rs. 13435. None of these. |
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Answer» Correct Answer - Option 3 : Rs. 6655 Given: Principal = Rs. 16,550 Rate = 10% per annum Time = 3 years Formula used: For Installment at CI, P = x/{1 + (R/100)} + x/{1 + (R/100)}2 + x/{1 + (R/100)}3 + … where, P = Money borrowed or Principal. x = value of each instalment R = Rate (%) Calculation: Let value of one instalment be x. x/{1 + (R/100)} + x/{1 + (R/100)}2 + x/{1 + (R/100)}3 = 16550 ⇒ x/{1 + 10/100) + x/(1 + 10/100)2 + x/(1 + 10/100)3 = 16550 ⇒ x/(1 + 1/10) + x/(1 + 1/10)2 + x/(1 + 1/10)3 = 16550 ⇒ x/(11/10) + x/(11/10)2 + x/(11/10)3 = 16550 ⇒ 10x/11 + 100x/121 + 1000x/1331 = 16550 ⇒ (1210x + 1100x + 1000x)/1331 = 16550 ⇒ 3310x/1331 = 16550 ⇒ x = Rs. 6655 ∴ Annual installment is Rs. 6655 |
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