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A man borrows Rs.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

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A man borrows Rs.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
1). Rs.12000
2). Rs.12100
3). Rs.12200
4). Rs.12300

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2 answers

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Answered by on | Votes 0 |
Rs.12100

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Answered by on | Votes 1 |

Here is the right answer

If each instalment be x, then
Present worth of first instalment

$\frac{21000}{\frac{100}{110}\frac{10000}{12100}}$

$\frac{21000}{210}\times121$

= 12100




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