Q78
A man, borrow Rs 21000 at 10% compound interest. How much he has to pay annually at the end of each year, to settle his loan in two years ?
A.
Rs. 12000
B.
Rs. 12100
AnswerC.
Rs. 12200
D.
Rs. 12300
Answer: Option B
Solution
Answer: Option B
Solution:
\begin{aligned}
& {\text{Rate }} \Rightarrow {\text{ 10% = }}\frac{1}{{10}} \\
& {\text{Each installment of 2 years}} \\
& \Rightarrow \frac{{10}}{{11}} \times \frac{{\left( {10 + 11} \right)}}{{11}} \times {\text{ Installment = P}}{\text{.A}} \\
& {\text{P}}{\text{.A = 21000}} \\
& {\text{Each installment = 12100}} \\\end{aligned}