6 +0 -0.33A builder borrows Rs. 2550 to be paid back withcompound inte

1.	6 +0 -0.33A builder borrows Rs. 2550 to be paid back withcompound interest at the rate of 4% per annum bythe end of 2 years in two equal yearly installments.How much will each installment be?
Answer» Let each installment be x Then, for compound interesrtA = P(1 + R/100)^2 P = x/(1 + 4/100) + x/(1 + 4/100)^2 2550 =x/(26/25) + x/(26/25)^2 2550 = 25x/26 (1 + 25 /26) 255026/25 = x(51/26) 1022626/51 = x x = 2626*2 x = 1352 Therefore every year installment is Rs 1352

6 +0 -0.33A builder borrows Rs. 2550 to be paid back withcompound interest at the rate of 4% per annum bythe end of 2 years in two equal yearly installments.How much will each installment be?

Answer»

Let each installment be x

Then, for compound interesrtA = P(1 + R/100)^2

P = x/(1 + 4/100) + x/(1 + 4/100)^2

2550 =x/(26/25) + x/(26/25)^2

2550 = 25x/26 (1 + 25 /26)

2550*26/25 = x(51/26)

102*26*26/51 = x

x = 26*26*2

x = 1352

Therefore every year installment is Rs 1352