Register

compound interest question

6,246 views
1 1 vote
a sum of rs. 1100 was taken as loan. this is to be repaid in 2 equal installments.if the rate of interest is 20% compounded annually then value of each installment is?

1 Answer

Best answer
0 0 votes
Let each instalment be Y₹,
Value of 1100 at the end of the 1st year = 1100x(1 + (20/100)) = 1100 x 1.2 = 1320₹.
As Y₹ is paid at the end of 1st year, the remaining amount i.e. ₹(1320 - Y) has to be paid at the end of 2nd year.
=> (1320 - Y)(1 + 0.2) = Y.
=> Y = 720₹.
Voting & Accepting an answer helps improve the community
← Previous · Simple interestNext → · Numerical ability
← Previous in category · Simple interestNext in category → · Numerical ability
Position:
Show:

Related questions

2 2 votes
1 answers 1 answer
4.3k
4.3k views
Pratyush Priyam Kuan asked Apr 5, 2020
4,318 views
TIme Compound Interest question no. 18
Sourabh borrows rs 25,00,000 at 12% compound interest from a bank and invests in shares. The investment gives him a return of 20% per annum and he repays rs 5,00,000 at t...
1 1 vote
1 answers 1 answer
6.0k
6.0k views
Pooja Palod asked Dec 11, 2015
6,027 views
compound interest
1)A man borrowed Rs.25000 from a bank at 20% compound interest. At the end of every year he paid Rs.8000. At the end of third year, if he wants to clear his loan then how...
1 1 vote
1 1 answer
4.2k
4.2k views
Pooja Palod asked Dec 11, 2015
4,230 views
simple and compound interest
The compound interest on a certain sum for 2 years is Rs.2520 and simple interest on the same sum of money at same rate of interest for 2 years is Rs.2400. Find the sum a...
0 0 votes
0 0 answers
2.4k
2.4k views
rahul sharma 5 asked Jan 19, 2017
2,392 views
Simple Interest
What annual installment will discharge a debt of rs 1092 due in 3 years?
0 0 votes
1 answers 1 answer
3.3k
3.3k views
srestha asked Aug 29, 2016
3,277 views
Interest
Simple interest on a certain sum is 16/25 of the sum. If the rate of interest and time are equal, then their value is _________