Ram buy a second hand bike of Rs 13600 as a loan which along with interest is to be paid in two equal annual installment.If the rate of interest is 12.5 % compounded annually, then the value of each installment is:
(A) Rs 8100
(B) Rs 8300
(C) Rs 8500
(D) Rs 9100
Answer: (A)
Explanation: Rate of interest = 12.5% =1/8
Principal Installment 1st year 8 9 (1) 2nd year 82 92 (2)
Since, installment is equal in both years so multiply (1) by 9
Total principal = 64 + 72 = 136
136 -> 13600
1 -> 100
81 -> 8100
So, each installment equal to Rs 8100.
Quiz of this Question
Please comment below if you find anything wrong in the above post
Article Tags :
Recommended Articles
10. | | Question 8
11. | | Question 9
12. | | Question 10
13. | | Question 11
14. | | Question 12
15. | | Question 13
16. | | Question 14
17. | | Question 15
18. | | Question 17
19. | | Question 18
20. | | Question 19
21. | | Question 20
22. | | Question 21
23. | | Question 22
24. | | Question 24
25. | | Question 25