Chapter 6: Instalments

Example 6. A loan has to be returned in two equal annual instalments. If the rate of interest is 16% p.a. compounded annually and each instalment is Rs. 1682, find the sum borrowed and the total interest charged.

Solution:-

Let loan = P1 + P2

1682 = P1 ( 1 + 16/100)1

= P1 (116/100)1

= P1 ( 29/25)1

Similarly,

Loan = Rs. 2700

Interest charged = Rs. 1682 - Rs. 2700

= Rs. 664

 

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Subjects Maths (Part-1) by Mr. M. P. Keshari
Chapter 1 Linear Equations in Two Variables
Chapter 2 HCF and LCM
Chapter 3 Rational Expression
Chapter 4 Quadratic Equations
Chapter 5 Arithmetic Progressions
Chapter 6 Instalments
Chapter 7 Income Tax
Chapter 8 Similar Triangles