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A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The amount of each installment to cover the principal and at 4% p.a CI is
- a)Rs. 587.87
- b)Rs. 587
- c)Rs. 578.87
- d)none of these
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The a...
- The formula to calculate the Equated Monthly Installment (EMI) is:
- EMI = (P × r × (1 + r)n) / ((1 + r)n - 1)
- Where:
- P = Principal loan amount = Rs. 10,000
- r = Annual interest rate (as a decimal) = 0.04 (4%)
- n = Number of installments = 30
- Step-by-Step Calculation:
- 1. Substitute the values into the formula:
- EMI = (10000 × 0.04 × (1 + 0.04)30) / ((1 + 0.04)30 - 1)
- 2. Calculate (1 + 0.04)30:
- (1 + 0.04)30 = 1.0430 ≈ 3.2434
- 3. Substitute this value back into the formula:
- EMI = (10000 × 0.04 × 3.2434) / (3.2434 - 1)
- 4. Calculate the EMI:
- EMI = (10000 × 0.129736) / 2.2434 ≈ 578.02
- Final Answer:
- The amount of each installment to cover the principal and interest at 4% per annum compound interest is Rs. 578.02.
Most Upvoted Answer
A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The a...
Given:
Principal (P) = Rs. 10,000
Number of instalments (n) = 30
Rate of interest (r) = 4% p.a.
To find: Amount of each installment to cover the principal and at 4% p.a CI
Formula used:
Compound Interest Formula: A = P(1 + r/100)^n
EMI Formula: EMI = [P x r x (1 + r)^n]/[(1 + r)^n - 1]
Calculation:
First, we need to calculate the compound interest on Rs. 10,000 for 30 months at 4% p.a.
n = 30 months
r = 4/12 = 0.33% per month
A = P(1 + r/100)^n
A = 10,000(1 + 0.33/100)^30
A = 11,594.22
Now, we need to calculate the amount of each installment (EMI) that covers both the principal and the compound interest.
EMI = [P x r x (1 + r)^n]/[(1 + r)^n - 1]
EMI = [10,000 x 0.33 x (1 + 0.33)^30]/[(1 + 0.33)^30 - 1]
EMI = 578.87 (approx)
Therefore, the amount of each installment to cover the principal and at 4% p.a CI is Rs. 578.87 (approx).
Hence, option (c) is the correct answer.
Principal (P) = Rs. 10,000
Number of instalments (n) = 30
Rate of interest (r) = 4% p.a.
To find: Amount of each installment to cover the principal and at 4% p.a CI
Formula used:
Compound Interest Formula: A = P(1 + r/100)^n
EMI Formula: EMI = [P x r x (1 + r)^n]/[(1 + r)^n - 1]
Calculation:
First, we need to calculate the compound interest on Rs. 10,000 for 30 months at 4% p.a.
n = 30 months
r = 4/12 = 0.33% per month
A = P(1 + r/100)^n
A = 10,000(1 + 0.33/100)^30
A = 11,594.22
Now, we need to calculate the amount of each installment (EMI) that covers both the principal and the compound interest.
EMI = [P x r x (1 + r)^n]/[(1 + r)^n - 1]
EMI = [10,000 x 0.33 x (1 + 0.33)^30]/[(1 + 0.33)^30 - 1]
EMI = 578.87 (approx)
Therefore, the amount of each installment to cover the principal and at 4% p.a CI is Rs. 578.87 (approx).
Hence, option (c) is the correct answer.
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Community Answer
A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The a...
P =10k, i = 0.04 ,n = 30 to find c
formula p=c÷i × [1- (1+i)^-n] by putting values we get answer 578.30 so either option (d) or (c )
formula p=c÷i × [1- (1+i)^-n] by putting values we get answer 578.30 so either option (d) or (c )
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A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The amount of each installment to cover the principal and at 4% p.a CI isa)Rs. 587.87b)Rs. 587c)Rs. 578.87d)none of theseCorrect answer is option 'C'. Can you explain this answer?
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A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The amount of each installment to cover the principal and at 4% p.a CI isa)Rs. 587.87b)Rs. 587c)Rs. 578.87d)none of theseCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The amount of each installment to cover the principal and at 4% p.a CI isa)Rs. 587.87b)Rs. 587c)Rs. 578.87d)none of theseCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of A loan of Rs. 10.000 is to be paid back in 30 equal instalments. The amount of each installment to cover the principal and at 4% p.a CI isa)Rs. 587.87b)Rs. 587c)Rs. 578.87d)none of theseCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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