a sum of rs 1100 was taken as a loan this..., Compound Interest, General Mathematics

Question:A sum of Rs.`1100` was taken as a loan. This is to be repaid in two equal instalments. If the rate of interest be `20%`compouonded annually, then the value of each instalment is :

A `Rs. 842` 
B `Rs. 792` 
C `Rs. 720` 
D `Rs. 700`

/44

+ AnswerC

+ ExplanationLet the value of each instalment be Rs.x Then,

(p.w. of Rs. x. due `1` year hence) + (p.w. of Rs.x due `2` years hence)

`= Rs. 1100`.

`:. x/((1 + 20/100)) + x/((1 + 20/100))^2`

`= 100`

`or (5x)/6 + (25x)/36`

`= 1100`

`or 55x = 36 xx 1100`

`:. x = ((36 xx 1100)/55)`

` = Rs. 720`

+ Report

Descriptive on Compound Interest Ebook

Total Preview: 1001