A sum of Rs. 4,620 is to be paid back in 2 equal annual instalments. How much is each instalments (in Rs.) if the interest is compounded annually at 10% per annum?

Solution (By Examveda Team)

$$\eqalign{ & P = {\text{Rs}}{\text{. }}4620 \cr & R = 10\% = \frac{1}{{10}} \cr} $$
\[\begin{array}{*{20}{c}} {{\text{Principal}}}&{{\text{Instalments}}} \\ {110 = 10 \times 11}&{11 \times 11 = 121} \\ {100 = 100}&{121} \\ \begin{gathered} 210 \hfill \\ \,\,\,\,\,{ \downarrow ^{ \times 22}} \hfill \\ \end{gathered} &\begin{gathered} \hfill \\ \,\,\,\,\,{ \downarrow ^{ \times 22}} \hfill \\ \end{gathered} \\ {4620}&{{\text{Rs}}{\text{. }}{\mathbf{2662}}} \end{array}\]