If the Rs. 7500 taken at 8% compound interest is to be repaid in equal

1.	If the Rs. 7500 taken at 8% compound interest is to be repaid in equal annual installment of 3 years, find the approximate annual installment.1. Rs. 30132. Rs. 28673. Rs. 27284. Rs. 2910
Answer» Correct Answer - Option 4 : Rs. 2910 Given: If the Rs. 7500 taken at 8% compound interest is to be repaid in equal annual installment of 3 years Formula used: P(1 + R/100)^T = x + x(1 + R/100) + x(1 + R/100)²................+ x(1 + r/100)⁽^{n – 1)} P = principal, R = rate per annum, T = time Calculation: Let be the each installment be Rs. x According to the question, ⇒ 7500(1 + 8/100)³ = x + x(1 + 8/100) + x(1 + 8/100)² ⇒ 7500 × 1.08³ = x + 1.08x + 1.664x ⇒ 9447.84 = 3.2462x ⇒ x = 9447.48/3.2464 ⇒ x = 2910(Approx) ∴ The approximate annual installment is Rs. 2910.

If the Rs. 7500 taken at 8% compound interest is to be repaid in equal annual installment of 3 years, find the approximate annual installment.1. Rs. 30132. Rs. 28673. Rs. 27284. Rs. 2910

Answer» Correct Answer - Option 4 : Rs. 2910

Given:

If the Rs. 7500 taken at 8% compound interest is to be repaid in equal annual installment of 3 years

Formula used:

P(1 + R/100)^T = x + x(1 + R/100) + x(1 + R/100)²................+ x(1 + r/100)⁽^{n – 1)}

P = principal, R = rate per annum, T = time

Calculation:

Let be the each installment be Rs. x

According to the question,

⇒ 7500(1 + 8/100)³ = x + x(1 + 8/100) + x(1 + 8/100)²

⇒ 7500 × 1.08³ = x + 1.08x + 1.664x

⇒ 9447.84 = 3.2462x

⇒ x = 9447.48/3.2464

⇒ x = 2910(Approx)

∴ The approximate annual installment is Rs. 2910.

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