SSC CPO SI and ASI Model Paper 7

Question : 106 of 200

Marks: +1, -0

A sum of ₹39,720 is due to be repaid at the end of 3 years. It has to be repaid in three equal annual installments at 10% per annum compounded annually. If installments are paid at the end of year then find the value of each installment.

₹14,400
₹12,000
₹15,600
₹12,800

Validate

Solution:

(2) Let X be each annualinstallment, then

X(1+ {10 /100})^2+X(1 +10 /100) +X

⇒(1.1)^2X + (1.1)X + X = 39720

⇒1.21X + 1.1X + X = 39720

⇒3.31X = 39720

⇒X = 12000

∴Each annual installment
= ₹12,000

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