Installment - Ram borrowed a sum of money and returned it in 3 equal Quarterly installments of Rs 17576 each. Find the sum borrowed, if the ... calculator

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Installment

8. Ram borrowed a sum of money and returned it in 3 equal Quarterly installments of Rs 17576 each. Find the sum borrowed, if the rate of interest charged was 16 % per annum compounded as installment plan. Find also the total interest charged.

InstallAmt = `17576`

Number of Installment = `3`

Rate = `4`

The amount of `17576` Rs paid at the end of 1st Year

has its principal equal to ` = 17576 / ( 1 + 4 / 100 )`

` = 17576 / ( 104 / 100 )`

` = 17576 × 0.9615`

Similarly, for `2^(nd)` Year = `17576 × (0.9615)^2`

Similarly, for `3^(rd)` Year = `17576 × (0.9615)^3`

`:.` The total of the present values of the `3` Installment is Rs `( 17576 × 0.9615 + 17576 × (0.9615)^2 + 17576 × (0.9615)^3 )`