A loan is to be returned in two equal yearly installments, if the rate of interest is 30% p.a. compounded annually, and each installment is Rs. 8112 then the total interest charges in this scheme is?
Answer & explanation
Correct answer: option 2
30% = \(\frac{3}{10}\)
Ist year = 10 13
IInd year = 100 169
Now equal both installment
130 169
100 169
--------------------------------------------
230 338
Principal Due debt
x48
169 unit → 8112
1 unit → 48
Interest = 338 - 230 = 108
= 48 × 108 = 5184