Kamal took 6800 as a loan which along with interest is to

Kamal took 6800 as a loan which along with interest is to be repaid in two equal
annual instalments. If the rate of interest is 12 1 %, compounded annually, then the
2
value of each instalment is

Let the annual instalment be y
Using the given formula ,

A = P		1 +	R		^T
			T

y = P₁		1 +	25
			200

⇒ y = P₁ ×	9
	8

⇒ P₁ =	8	y
	9

Similarly,P₂ =	64	y
	81

P₁ + P₂ = 6800

⇒	8	y +	64	y = 6800
	9		81

⇒	72y + 64y	= 6800
	81

⇒	136y	= 6800
	81

⇒ y =	6800 × 81	= ₹ 4050
	136

We can find required answer with the help of given formula :

Here, P = ₹ 6800, R =	25	% , n = 2
	2

Each instalment =	6800 × 225 × 225	= ₹ 4050
	200 × 425

annual instalments. If the rate of interest is 12	1	%, compounded annually, then the
	2