Given :- A sum was lent to X for three years by an organisation who fixed a yearly rate of 10% compound Interest for repayment along with the condition of recovery in equal installments of RS.31944 per year. What percentage (correct to two decimal places) above the borrowed amount had X to pay the organization ?

Solution :-

given that,

• Rate of interest = 10% compounded annually.
• Equal installment each year = Rs.31944 .
• Time = 3 years.

So,

→ Rate = 10% = (1/10)

Than,

• 1st year = 10 -------- 11
• second year = 100 --------- 121
• Third year = 1000 ---------- 1331 (Let installment per year.)

Making all installment same now,

• 1st year = 1210 -------- 1331
• second year = 1100 --------- 1331
• Third year = 1000 ---------- 1331

So,

→ Total Principal = 1210 + 1100 + 1000 = Rs.3310 .

Therefore, we can CONCLUDE that,

→ when installment is Rs.1331 per year , principal is = Rs.3310 .

than,

→ when installment is Rs.1331 per year , principal is = Rs.(3310/1331) .

so,

→ when installment is Rs.31944 per year , principal is = Rs.(3310 * 31944)/1331 = Rs.79,440 .

So,

→ Principal = Rs.79,440

→ Total amount paid in three installments = 31944 * 3 = Rs.95982

Now,

→ Extra amount paid = 95982 - 79440 = Rs.16542.

Hence,

→ % Extra amount paid = (16542 * 100) / 79440 = 20.82% .

∴ 20.82% (correct to two decimal places) above the borrowed amount had X to pay the organization.

Learn more :-

Sahil DEPOSITED an amount in a bank at a certain rate of interest which is compounded annually. When he

inquired from th...

brainly.in/question/26967119

If there is 45% INCREASE in amount in 3 years at simple interest, what will be the compound interest of Rs.

12,000 at th...

brainly.in/question/26772982