A sum of Rs. 21000 was borrowed at 10% p.a. compound interest. It was returned in two equal installments. Find amount of each installment.
Answer & explanation
Correct answer: option 4
10% = \(\frac{1}{10}\)
Principal : Installment
1st ⇒ 10 : 11
2nd ⇒ 100 : 121
* Installment amount for each year should be same*
Therefore,
Principal : Installment
1st ⇒ 10 : 11 ) × 11
2nd ⇒ 100 : 121 ) × 1
Principal : Installment
1st ⇒ 110 : 121
2nd ⇒ 100 : 121
Sum ⇒ 210 : 121 (Each Installment)
↓ ↓
×100 ×100
↓ ↓
21000(given) 12100