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Rahul purchases a bike of amount Rs. 84000. This is to be paid in two equal installments. If the rate interest of 10% per annum compounded annually. Find the value of each installment?1. Rs. 38,5002. Rs. 37,5003. Rs. 37,4004. Rs. 48,4005. Rs. 40,500 |
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Answer» Correct Answer - Option 4 : Rs. 48,400 Given: Amount of a bike (P) = Rs. 84000 Rate of interest = 10% Formula used: P × {1 + (R/100)}2 = I × {1 + (R/100)} + I Where p = principal R = rate percentage at compound interest I = each installment Calculation: 84000 × {1 + (10/100)}2 = I × {1 + (10/100)} + I ⇒ 84000 × (11/10) × (11/10) = I × (11/10) + I ⇒ 840 × 11 × 11 = (21/10) × I ⇒ I = (840 × 10 × 11 × 11)/21 ⇒ I = 48400 ∴ The value of each installment is Rs. 48,400 |
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