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A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is?
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A company borrows 10000 on a condition to repay it with compound inter...
Analysis:
The total amount borrowed is 10000 with a compound interest rate of 5% per annum. The company plans to repay the debt through annual installments of 1000 each.
Calculation:
1. The annual installment is 1000, and the interest rate is 5% per annum.
2. The interest for the first year would be 10000 * 5% = 500.
3. Subtracting the interest from the first installment gives us the principal repayment, which is 1000 - 500 = 500.
4. The remaining balance after the first installment would be 10000 - 500 = 9500.
5. For the second year, the interest would be 9500 * 5% = 475.
6. Subtracting the interest from the second installment gives us the principal repayment of 1000 - 475 = 525.
7. The remaining balance after the second installment would be 9500 - 525 = 8975.
8. This process continues until the debt is completely repaid.
Number of Years:
The number of years required to clear the debt can be calculated by dividing the total debt by the annual installment.
Number of years = Total Debt / Annual Installment
Number of years = 10000 / 1000 = 10 years
Therefore, it will take 10 years for the company to clear the debt with annual installments of 1000 each.
The total amount borrowed is 10000 with a compound interest rate of 5% per annum. The company plans to repay the debt through annual installments of 1000 each.
Calculation:
1. The annual installment is 1000, and the interest rate is 5% per annum.
2. The interest for the first year would be 10000 * 5% = 500.
3. Subtracting the interest from the first installment gives us the principal repayment, which is 1000 - 500 = 500.
4. The remaining balance after the first installment would be 10000 - 500 = 9500.
5. For the second year, the interest would be 9500 * 5% = 475.
6. Subtracting the interest from the second installment gives us the principal repayment of 1000 - 475 = 525.
7. The remaining balance after the second installment would be 9500 - 525 = 8975.
8. This process continues until the debt is completely repaid.
Number of Years:
The number of years required to clear the debt can be calculated by dividing the total debt by the annual installment.
Number of years = Total Debt / Annual Installment
Number of years = 10000 / 1000 = 10 years
Therefore, it will take 10 years for the company to clear the debt with annual installments of 1000 each.
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A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is?
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A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is?.
A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company borrows 10000 on a condition to repay it with compound interest at 5% p.a. by annual installments of 1000 each. The number of years by which the debt will be clear is?.
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