A man borrows ₹ 21000 at 10% compound interest. How much

A man borrows ₹ 21000 at 10% compound interest. How much he has to pay annually at the end of each year, to settle his loan in two years ?

If each instalment be y, then

∴Present worth of first instalment =	y	=	10y
	[ 1 + ( 11 / 100 ) ]		11

Present worth of second instalment =	y	=	100y
	[ 1 + ( 11 / 100 ) ]²		121

∴	10	y +	100	y = 21000
	11		121

⇒	110y + 100y	= 21000
	121

⇒ 210y = 21000 × 121

⇒ y =	21000 × 121	= ₹ 12100
	210

Second Method to solve this question :
Here, n = 2 , P = ₹ 21000 , r = 10%

Each annual instalment =	21000	× 121
	110 + 100

Each annual instalment =	21000	× 121 = 12100
	210