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A loan of 10000 is to be paid back in 30 equal installment. The amount of each installment to cover the principal and at 4%.a C.I is?
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A loan of 10000 is to be paid back in 30 equal installment. The amount...
Calculation of Compound Interest on a Loan of 10000 with 4% Interest

Loan Details:
- Principal Amount: 10000
- Interest Rate: 4%
- Number of Installments: 30

Calculation of Each Installment:
- To calculate the equal installment amount, we can use the formula for the monthly installment on a loan:
A = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
where,
A = Monthly installment amount
P = Principal amount (10000)
r = Interest rate per month (4% or 0.04)
n = Number of installments (30)
- Plugging in the values:
A = 10000 * (0.04 * (1 + 0.04)^30) / ((1 + 0.04)^30 - 1)
A = 10000 * (0.04 * (1.04)^30) / ((1.04)^30 - 1)
A = 10000 * (0.04 * 2.208) / (2.208 - 1)
A = 10000 * 0.08832 / 1.208
A = 883.20 / 1.208
A ≈ 731.23

Calculating Compound Interest:
- To calculate the compound interest on the loan, we can use the formula:
CI = P * (1 + r/n)^(nt) - P
where,
CI = Compound interest
P = Principal amount (10000)
r = Annual interest rate (4% or 0.04)
n = Number of times interest is compounded per year (12 for monthly)
t = Number of years (30/12 for monthly)
- Plugging in the values:
CI = 10000 * (1 + 0.04/12)^(12*30/12) - 10000
CI = 10000 * (1 + 0.003333)^30 - 10000
CI = 10000 * (1.003333)^30 - 10000
CI = 10000 * 1.107177 - 10000
CI ≈ 10717.70
Therefore, the amount of each installment to cover the principal and 4% compound interest on a loan of 10000 repaid in 30 equal installments is approximately 731.23, and the total compound interest paid over the term of the loan is approximately 10717.70.
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A loan of 10000 is to be paid back in 30 equal installment. The amount of each installment to cover the principal and at 4%.a C.I is?
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