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Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment?
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Under the Rural Housing Scheme, the Delhi Development Authority (DDA) ...
Given information:
- The house is allotted under the Rural Housing Scheme by the Delhi Development Authority (DDA) to Kamal Raj.
- The cost of the house is 1,26,100.
- The payment is to be made in three equal annual installments.
- The interest rate is 5% per annum compounded annually.
To find:
- The amount to be paid by Kamal Raj in each installment.
Solution:
Step 1: Calculate the compound interest:
The compound interest formula is given by:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount
- P is the principal amount
- r is the rate of interest (in decimal form)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, the principal amount is 1,26,100, the rate of interest is 5% (0.05 in decimal form), the interest is compounded annually (n = 1), and the number of years is 3.
Using the formula, we can calculate the final amount (A):
A = 1,26,100(1 + 0.05/1)^(1*3)
A = 1,26,100(1 + 0.05)^3
A = 1,26,100(1.05)^3
A ≈ 1,26,100(1.157625)
A ≈ 1,45,917.63
So, the compound interest is approximately 19,817.63.
Step 2: Calculate the installment amount:
Since the payment is to be made in three equal annual installments, we divide the total cost (1,26,100) plus the compound interest (19,817.63) by 3.
Installment amount = (Total cost + Compound interest) / Number of installments
Installment amount = (1,26,100 + 19,817.63) / 3
Installment amount = 1,45,917.63 / 3
Installment amount ≈ 48,639.21
Therefore, Kamal Raj is required to pay approximately 48,639.21 in each installment.
Summary:
- The compound interest on the cost of the house (1,26,100) is approximately 19,817.63.
- Kamal Raj needs to pay approximately 48,639.21 in each of the three equal annual installments.
- The house is allotted under the Rural Housing Scheme by the Delhi Development Authority (DDA) to Kamal Raj.
- The cost of the house is 1,26,100.
- The payment is to be made in three equal annual installments.
- The interest rate is 5% per annum compounded annually.
To find:
- The amount to be paid by Kamal Raj in each installment.
Solution:
Step 1: Calculate the compound interest:
The compound interest formula is given by:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount
- P is the principal amount
- r is the rate of interest (in decimal form)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, the principal amount is 1,26,100, the rate of interest is 5% (0.05 in decimal form), the interest is compounded annually (n = 1), and the number of years is 3.
Using the formula, we can calculate the final amount (A):
A = 1,26,100(1 + 0.05/1)^(1*3)
A = 1,26,100(1 + 0.05)^3
A = 1,26,100(1.05)^3
A ≈ 1,26,100(1.157625)
A ≈ 1,45,917.63
So, the compound interest is approximately 19,817.63.
Step 2: Calculate the installment amount:
Since the payment is to be made in three equal annual installments, we divide the total cost (1,26,100) plus the compound interest (19,817.63) by 3.
Installment amount = (Total cost + Compound interest) / Number of installments
Installment amount = (1,26,100 + 19,817.63) / 3
Installment amount = 1,45,917.63 / 3
Installment amount ≈ 48,639.21
Therefore, Kamal Raj is required to pay approximately 48,639.21 in each installment.
Summary:
- The compound interest on the cost of the house (1,26,100) is approximately 19,817.63.
- Kamal Raj needs to pay approximately 48,639.21 in each of the three equal annual installments.
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Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment?
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Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment? 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 Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment?.
Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment? 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 Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment?.
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Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment?, a detailed solution for Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment? has been provided alongside types of Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for 1,26,100. This payment is to be made in three equal annual installments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each installment? theory, EduRev gives you an
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