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A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is?
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A loan of ₹10000 is to be paid in 30 installment. The amount of each i...
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A loan of ₹10,000 is being repaid in 30 installments with a compound interest rate of 4% per annum. To determine the amount of each installment, we need to calculate the total amount to be repaid and then divide it by the number of installments.
Calculating Total Amount
- Principal Amount: ₹10,000
- Interest Rate: 4% per annum
- Number of Installments: 30
To find the total amount, we use the formula for Compound Interest:
- Total Amount (A) = P(1 + r/n)^(nt)
Where:
- P = Principal amount (₹10,000)
- r = Annual interest rate (0.04)
- n = Number of times interest is compounded per year (assumed as 1 for simplicity)
- t = Number of years (30 installments / 12 months = 2.5 years)
Calculating the total amount:
- A = 10,000(1 + 0.04/1)^(1*2.5)
- A = 10,000(1.04)^2.5
- A ≈ 10,000 * 1.1004 ≈ ₹11,004
Calculating Each Installment
- Total Amount to be Repaid: ₹11,004
- Amount of Each Installment: Total Amount / Number of Installments
- Each Installment = ₹11,004 / 30 ≈ ₹366.80
Conclusion
The amount of each installment to cover the principal and interest at 4% p.a. compound interest is approximately ₹366.80. This ensures that the total loan amount, including interest, is repaid over the specified period.
A loan of ₹10,000 is being repaid in 30 installments with a compound interest rate of 4% per annum. To determine the amount of each installment, we need to calculate the total amount to be repaid and then divide it by the number of installments.
Calculating Total Amount
- Principal Amount: ₹10,000
- Interest Rate: 4% per annum
- Number of Installments: 30
To find the total amount, we use the formula for Compound Interest:
- Total Amount (A) = P(1 + r/n)^(nt)
Where:
- P = Principal amount (₹10,000)
- r = Annual interest rate (0.04)
- n = Number of times interest is compounded per year (assumed as 1 for simplicity)
- t = Number of years (30 installments / 12 months = 2.5 years)
Calculating the total amount:
- A = 10,000(1 + 0.04/1)^(1*2.5)
- A = 10,000(1.04)^2.5
- A ≈ 10,000 * 1.1004 ≈ ₹11,004
Calculating Each Installment
- Total Amount to be Repaid: ₹11,004
- Amount of Each Installment: Total Amount / Number of Installments
- Each Installment = ₹11,004 / 30 ≈ ₹366.80
Conclusion
The amount of each installment to cover the principal and interest at 4% p.a. compound interest is approximately ₹366.80. This ensures that the total loan amount, including interest, is repaid over the specified period.
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A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is?
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A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is?.
A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A loan of ₹10000 is to be paid in 30 installment. The amount of each installment to cover the principal and at 4% p.a CI is?.
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