A loan is to be returned in two equal yearly instalments. If the rate of interest is 10% p.a.. compounded annually and each instalment is ₹6534, then the total interest charged (in ₹) is:

1728

Each installment = Rs.6534110

 10% =  \(\frac{1 }{10}\)

  10     :     11       -----(1)

  10²    :     11²

Multiply equation (1) by 11.

 10×11  :    11²

Total principal = 100 + 110 = 210

ATQ,

121R = 6534

1R = 54

Total amount paid = 242R = 242 × 54 = 13068

Total principal = 210R = 210 × 54 = 11340

Total interest charged = 13068 - 11340 = 1728