A loan of Rs.12,300 at 5% per annum compound interest, is to be repaid in two equal annual instalments at the end of every year. Find the amount of each instalment.
Options:
A . Rs.6,156
B . Rs.6,651
C . Rs.6,516
D . Rs.6,615
Answer: Option D Answer: (d)Using Rule 9(i),Let each instalment be x.$x/(1 + 5/100) + x/(1 + 5/100)^2 = 12300$${20x}/21 + (20/21)^2x = 12300$${20x}/21(1 + 20/21)$ = 12300${20x}/21 × 41/21 × x = 12300$$x = {12300 × 21 × 21}/{20 × 41}$ ⇒ x = 6615
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