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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