Question
Download Solution PDFSita takes a loan of Rs. 35,000 at an interest rate of 10% compound interest, compounded annually. She agrees to pay two equal instalments in 2 years, one instalment at the end of each year. Find the value of each instalment.(Round off to the nearest integer)
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Principal (P) = ₹35,000
Interest Rate (r) = 10%
Time (t) = 2 years
Formula Used:
Instalment (EMI) formula for compound interest:
P = EMI (1+(r) / (100))-1 + EMI (1+(r) / (100))-2
Calculation:
35,000 = EMI (1+(10) / (100))-1 + EMI (1+(10) / (100))-2
⇒ 35,000 = EMI (1+0.1)-1 + EMI (1+0.1)-2
⇒ 35,000 = EMI (1.1)-1 + EMI (1.1)-2
⇒ 35,000 = EMI (1) / (1.1) + EMI (1) / (1.12)
⇒ 35,000 = EMI (1)/ (1.1) + EMI (1)/ (1.21)
⇒ 35,000 = EMI (0.9091 + 0.8264)
⇒ 35,000 = EMI × 1.7355
⇒ EMI = (35,000) / (1.7355)
⇒ EMI ≈ ₹20,167
∴ The correct answer is option (3).
Last updated on May 28, 2025
-> The SSC has released the new SSC CPO exam calendar which includes Notification Details. According to the notification, SSC CPO application will be active from 16th June 2025 to 7th July 2025.
-> The SSC CPO Exam Dates will be conducted from 1st September 2025 to 6th September 2025.
-> The selection process for SSC CPO includes a Tier 1, Physical Standard Test (PST)/ Physical Endurance Test (PET), Tier 2, and Medical Test.
-> The salary of the candidates who will get successful selection for the CPO post will be from ₹35,400 to ₹112,400.
-> Prepare well for the exam by solving SSC CPO Previous Year Papers. Also, attempt the SSC CPO Mock Tests.
-> Attempt SSC CPO Free English Mock Tests Here!