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A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed?
Most Upvoted Answer
A man borrows 20000rs and agree to pay borrowed amount in 10 equal ins...
Given data:
- Principal amount (P) = 20000rs
- Number of installments (n) = 10
- Rate of interest (r) = 6% p.a
- First installment paid after 1 year
Formula used:
EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
Calculation:
Step 1: Calculate the interest rate per installment
Since the interest rate is given as 6% p.a, we need to find the interest rate per installment. As there are 12 months in a year, the interest rate per month will be 6/12 = 0.5%.
Therefore, the interest rate per installment = 0.5%
Step 2: Calculate the total interest payable
As the loan is for 10 installments and the first installment is paid after 1 year, the total time period for the loan will be 11 years. Therefore, the total interest payable will be:
Total interest = P x r x n
= 20000 x 0.5/100 x 10
= 10000rs
Step 3: Calculate the total amount payable
The total amount payable will be the sum of the principal and the total interest payable.
Total amount payable = P + Total interest
= 20000 + 10000
= 30000rs
Step 4: Calculate the EMI
Using the formula for EMI, we get:
EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
= [30000 x 0.5/100 x (1 + 0.5/100)^10] / [(1 + 0.5/100)^10 - 1]
= 3371.81rs (approx.)
Therefore, the amount of each installment will be 3371.81rs, with the first installment being paid after 1 year.
- Principal amount (P) = 20000rs
- Number of installments (n) = 10
- Rate of interest (r) = 6% p.a
- First installment paid after 1 year
Formula used:
EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
Calculation:
Step 1: Calculate the interest rate per installment
Since the interest rate is given as 6% p.a, we need to find the interest rate per installment. As there are 12 months in a year, the interest rate per month will be 6/12 = 0.5%.
Therefore, the interest rate per installment = 0.5%
Step 2: Calculate the total interest payable
As the loan is for 10 installments and the first installment is paid after 1 year, the total time period for the loan will be 11 years. Therefore, the total interest payable will be:
Total interest = P x r x n
= 20000 x 0.5/100 x 10
= 10000rs
Step 3: Calculate the total amount payable
The total amount payable will be the sum of the principal and the total interest payable.
Total amount payable = P + Total interest
= 20000 + 10000
= 30000rs
Step 4: Calculate the EMI
Using the formula for EMI, we get:
EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]
= [30000 x 0.5/100 x (1 + 0.5/100)^10] / [(1 + 0.5/100)^10 - 1]
= 3371.81rs (approx.)
Therefore, the amount of each installment will be 3371.81rs, with the first installment being paid after 1 year.
Community Answer
A man borrows 20000rs and agree to pay borrowed amount in 10 equal ins...
If this is SI , then each installment would be - 3200
and in CI, each installment would be - 3581.6
and in CI, each installment would be - 3581.6
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A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed?
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A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed?.
A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man borrows 20000rs and agree to pay borrowed amount in 10 equal installments at the rate of 6% p.a find the amount of each instalment the first being paid one year after the money was borrowed?.
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