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A sum of Rs.3310 is to be paid back in 3 equal annual instalments. How much is each instalment if the interest is compounded annually at 10% per annum?
- ARs. 1321
- BRs. 1343
- CRs. 1325
- DRs. 1331
Answer not set
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CCommunity
A = P(1 + r/100)t
Where, A = Amount, P = Principle, r = %rate, t = time
Given, sum of Rs.3310 is to be paid back in 3 equal annual instalments.
Let the annual installment be ‘a’.
$(\Rightarrow 3310{\left( {1 + \frac{{10}}{{100}}} \right)^3} = a + a\left( {1 + \frac{{10}}{{100}}} \right) + a{\left( {1 + \frac{{10}}{{100}}} \right)^2})$
⇒ 3310 × 1.13 = a + 1.1a + 1.21a
⇒ 3.31a = 3310 × 1.13
⇒ a = Rs. 1331
Where, A = Amount, P = Principle, r = %rate, t = time
Given, sum of Rs.3310 is to be paid back in 3 equal annual instalments.
Let the annual installment be ‘a’.
$(\Rightarrow 3310{\left( {1 + \frac{{10}}{{100}}} \right)^3} = a + a\left( {1 + \frac{{10}}{{100}}} \right) + a{\left( {1 + \frac{{10}}{{100}}} \right)^2})$
⇒ 3310 × 1.13 = a + 1.1a + 1.21a
⇒ 3.31a = 3310 × 1.13
⇒ a = Rs. 1331