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Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment?
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Amit borrowed rs 21000 from vinay at 10%pa under compound interest, co...
Problem Statement:
Amit borrowed Rs.21,000 from Vinay at 10% p.a. under compound interest, compounded annually. If Amit has to repay the loan in two equal annual instalments, find the amount that he needs to pay in each instalment?
Solution:
Let's assume that Amit pays x amount as his instalment for two years to repay the loan.
Calculating the Future Value:
The formula to calculate the future value of a loan is:
FV = PV(1 + r)n
where FV = Future Value
PV = Present Value
r = Rate of Interest
n = Number of Years
Given that Amit borrowed Rs.21,000 from Vinay at 10% p.a. under compound interest, compounded annually, we can calculate the future value of the loan as follows:
FV = 21,000(1 + 0.1)2
FV = Rs. 25,401
Calculating the Instalment:
As per the question, Amit has to repay the loan in two equal annual instalments. Therefore, the amount Amit has to pay each year can be calculated as follows:
25,401 = x(1 + 0.1) + x
25,401 = 2x(1.1)
x = Rs.11,500.91
Therefore, Amit needs to pay Rs.11,500.91 in each instalment for two years to repay the loan.
Conclusion:
Hence, the amount that Amit needs to pay in each instalment is Rs.11,500.91.
Amit borrowed Rs.21,000 from Vinay at 10% p.a. under compound interest, compounded annually. If Amit has to repay the loan in two equal annual instalments, find the amount that he needs to pay in each instalment?
Solution:
Let's assume that Amit pays x amount as his instalment for two years to repay the loan.
Calculating the Future Value:
The formula to calculate the future value of a loan is:
FV = PV(1 + r)n
where FV = Future Value
PV = Present Value
r = Rate of Interest
n = Number of Years
Given that Amit borrowed Rs.21,000 from Vinay at 10% p.a. under compound interest, compounded annually, we can calculate the future value of the loan as follows:
FV = 21,000(1 + 0.1)2
FV = Rs. 25,401
Calculating the Instalment:
As per the question, Amit has to repay the loan in two equal annual instalments. Therefore, the amount Amit has to pay each year can be calculated as follows:
25,401 = x(1 + 0.1) + x
25,401 = 2x(1.1)
x = Rs.11,500.91
Therefore, Amit needs to pay Rs.11,500.91 in each instalment for two years to repay the loan.
Conclusion:
Hence, the amount that Amit needs to pay in each instalment is Rs.11,500.91.
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Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment?
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Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment?.
Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amit borrowed rs 21000 from vinay at 10%pa under compound interest, compounded annually. If amit has to repay the loan in two equal annual instalments find the amount that he needs to pay in each instalment?.
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