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
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