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
| 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 |
