Latest m4 maths Aptitude Question SOLUTION: A man borrows a loan of Rs 20,000 from a merchant at the rate of interest 1% per month for two month. If merchant wants to receive the money with interest in two equal installment.

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(#M40111589) M4 MATHS Category question installments Keep an EYE

A man borrows a loan of Rs 20,000 from a merchant at the rate of interest 1% per month for two month. If merchant wants to receive the money with interest in two equal installment. Then his installment will be

Asked In m4 maths MRITUNJAY (9 years ago)

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Surit Datta  (9 years ago)

Assume P to be the principal and r the rate of interest.

Step 1: P(1+r/100)=P1 (Amount for one year)
Step 2: New Principal
Now let X be the first installment.
After giving the first installment, the principal value will change and the new principal will be = P1 – X
P2 = P1 –X (1+R/100)
Step 3: Amount and Interest for the second year
Now the interest charged will be charged on this amount.
Amount at the end of second year: [P(1+r/100)-X][1+r/100] Step 4: Since the installments are equal, this new amount has to equal X.
Hence,
[P(1+r/100)-X][1+r/100]=X
On solving, we have
P [(1+R/100)2-X (1+R/100)] = X
P [(1+R/100)2] = X+X (1+R/100)
Divide both sides by (1+r/100)2
So we left with
P= X/(1+r/100)2 + X/(1+r/100)
Now putting the value of P = 20000 and r = 1
we get the value of X is 10150.2487 = 10150.25

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