What would be the installment monthly on a loan of 30000 rupee for 3 months, if 12 % yearly compound

M4maths Previous Puzzles

12 May 2011 Compound interest

What would be the installment monthly on a loan of 30000 rupee for 3 months, if 12 % yearly compound interest is added monthly

OPtion

1) 10303
2) 10301
3) 10302
4) 10203
5) 10201
6) 10202
7) 10103
8) 10101
9) 10102
10) 10198

Solution

Let the installment is A
then according to the given condition,
[(100/101)]A + [(100/101)^2]A + [(100/101)^3]A = 30000
on solving we get A = 10201

Correct Option: 5 Best Solution (0)