Q91
A sum of Rs 210 was taken as a loan. This is to be paid back in two equal installments. If the rate of interest be 10% compounded annually, then the value of each installment is = ?
A.
Rs. 127
B.
Rs. 121
AnswerC.
Rs. 210
D.
Rs. 225
Answer: Option B
Solution
Answer: Option B
Solution:
\begin{aligned}
& {\text{Rate of interest}} \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}} \\
& \Rightarrow \frac{{10}}{{11}} \times \frac{{\left( {10 + 11} \right)}}{{11}} \times {\text{ Installment = 210}} \\
& \Rightarrow {\text{Installment = 121}} \\\end{aligned}