A loan is to be returned in two equal yearly installments, if the rate of interest is 5% p.a. (compounded annually) and each installment is Rs. 14553, then 75% of the total interest (nearest to 1 Rs.) charges in the scheme is?

1535

Rate of interest = 5% = \(\frac{1}{20}\)

ATQ,

      I year         20 × 21        21 × 21

   II year             400               441

     (squ.)      --------------------------------

                    420 + 400            441 + 441

             P → 820                      882 → A

Total interest = 882 - 820 = 62

            441 R → 14553

              62 R →  \(\frac{14553}{441}\)  × 62 = Rs. 2046

75% of 2046 = 1534.5 = ∼ 1535