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A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is?
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A company borrows 10000 on condition to repay it with compound interes...
Explanation
Calculation of Interest
The interest rate is 5% per annum, which means the interest for each year is calculated as follows:
Interest for the first year = 5% of 10000 = 500
Interest for the second year = 5% of (10000 + 500) = 525
Interest for the third year = 5% of (10000 + 500 + 525) = 551.25
And so on
Calculation of Installment
The total amount to be repaid is 10000 + interest. Therefore, the total amount to be repaid after the first year is 10500, after the second year is 11025, and so on.
Since the annual installment is Rs. 1000, the number of years required to repay the loan can be calculated as follows:
Number of years = Total amount to be repaid / Annual installment
Number of years after the first year = 10500 / 1000 = 10.5
Number of years after the second year = 11025 / 1000 = 11.025
And so on
Conclusion
Since the number of years cannot be fractional, the company will take 11 years to repay the loan completely.
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A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is?
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A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is?.
A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company borrows 10000 on condition to repay it with compound interest at 5% p a by annual installment of rs 1000 each.the no of each year by which the debt will be clear is?.
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