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A person took a loan of R. 25220 from a bank under this condition that the would repay the loan b three equal instalments. If the rate of compound interest of the bank be 5% per annum, then find the amount of money in each instalment. |
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Answer» Let each of the instalment be Rs. 100 and the principal of the first instalment be Rs. `x`. `:.x xx(1+5/100)=100impliesx xx((100+5)/100)=100` `impliesx xx105/100=100` `impliesx=(100xx100)/105=2000/21` Similarly the principal of the second instalment `=Rs. (100xx100)/105xx100/105=Rs.40000/441` And the principal of the third instanlment. `=Rs. (100xx100)/105xx100/105xx100/105=Rs. 800000/9261` `:.` The total principal `=Rs.(2000/21+40000/441+800000/9261)` `=Rs. 2000/21(1+20/21+400/441)` `=Rs.2000/21((441+420+400)/441)` `=Rs. 2000/21xx1261/441=Rs. 2522000/9261` `:.` If the principal be `Rs. 2522000/9261`, then the instalments is Rs. 100 `:.` If the principal be Rs. 1, then the instalment is `Rs.(100xx9261)/2522000` If the principal be Rs. 25220 then the instalment is `Rs.(100xx9261xx25220)/2522000=Rs.9261` Hence the amount of each instalment is Rs. 9261. |
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