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A sum of Rs. 13360 was borrowed at $${\text{8}}\frac{3}{4}$$ % per annum compound interest and paid back in two years in two equal annual installments. What was the amount of each installment ?

A. Rs. 5769

B. Rs. 7569

C. Rs. 7009

D. Rs. 7500

Answer: Option B

Solution(By Examveda Team)

$$\eqalign{ & {\text{Rate of interest (r)}} \cr & {\text{ = 8}}\frac{3}{4}\% = \frac{7}{{80}} = \frac{{87 \to {\text{ Installment}}}}{{80 \to {\text{Principal}}}} \cr} $$
⇒     I     80×87     →     87×87   ......(i)
⇒     II     6400     →     7569   ......(ii)
Since, installment is equal hence multiply equation (i) by 87
⇒ Total principal = 6960 + 6400 = 13360
⇒ 13360 units = Rs. 13360
⇒ 1 units = Rs. 1
⇒ 7569 units = Rs. 7569
∴ Each installment = Rs. 7569

This Question Belongs to Arithmetic Ability >> Compound Interest

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Comments ( 1 )

  1. Kajal Sharma
    Kajal Sharma :
    3 years ago

    Rate of interest not understand plz give the other method for this question

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