B Ravi
B Ravi
8 years ago

A builder barrows Rs. 2550 to be paid back with compound interest at the rate of 4% per annum by the end of 2 yr in two equal yearly installments. How much with each installment be ?

A. Rs. 1352

B. Rs. 1377

C. Rs. 1275

D. Rs. 1283

Solution(By Examveda Team)

P = Rs. 2550.
R = 4%
T = 2 years.
Amount,
= P*[1+ (r/100)]T
= 2550 * [1 +(4/100) ]2
= 2550 * 1.042
= Rs. 2754 (Approx.)
Equal installment would = Rs. 1377.

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Comments ( 1 )

  1. Sudhakar Prajapati
    Sudhakar Prajapati :
    8 years ago

    Correct Answer = B

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