Example 38. A man borrows Rs. 20,000 at 4% C.I. and agrees to pay both the...

Transcribed Image Text:

Example 38. A man borrows Rs. 20,000 at 4% C.I. and agrees to pay both the principal and the interest in 10 equal annual instalments at the end of each year, find the amount of these instalments. Solution. Using the formula for present value 1 1- (1+i)n Example 38. A man borrows Rs. 20,000 at 4% C.I. and agrees to pay both the principal and the interest in 10 equal annual instalments at the end of each year, find the amount of these instalments. Solution. Using the formula for present value 1 1- (1+i)n