Under the Rural Housing Scheme, the Delhi Development Authority (DDA)…

Question

Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for Rs. 126100. This payment is to be made in three equal annual instalments. If the money is reckoned at 5% per annum…

Accepted Answer

Option B. Rs. 46305. Answer & Solution Answer: Option B Solution: Let the value of each instalment be Rs. x Then, (P.W. of Rs. x due 1 year hence) + (P.W. of Rs. x due 2 year hence) + (P.W. of Rs. x due 3 year hence) = 126100 & x ( 1 + 5100 ) + x ( 1 + 5100 )^2 + x ( 1 + 5100 )^3 = 126100 & 20x21 +…

Under the Rural Housing Scheme, the Delhi Development Authority (DDA) allotted a house to Kamal Raj for Rs. 126100. This payment is to be made in three equal annual instalments. If the money is reckoned at 5% per annum compound interest, then how much is to be paid by Kamal Raj in each instalment ?

Solution