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Installments in SI CI

The document provides 7 examples of calculating simple and compound interest on loans with installments. It includes calculating interest rates, installment amounts, principal amounts, and amounts due on loans paid back over time in installments. The examples cover a range of compound and simple interest scenarios involving loans paid back annually, semi-annually, quarterly or monthly with varying installment structures.

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Lin Lae Phyu
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101 views

Installments in SI CI

The document provides 7 examples of calculating simple and compound interest on loans with installments. It includes calculating interest rates, installment amounts, principal amounts, and amounts due on loans paid back over time in installments. The examples cover a range of compound and simple interest scenarios involving loans paid back annually, semi-annually, quarterly or monthly with varying installment structures.

Uploaded by

Lin Lae Phyu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Installments in Simple Interest

1. A cell phone is available for Rs.600 or for Rs.300 cash down payment together with Rs.360 to be paid
after two months. Find the rate of interest charged under this scheme. (Ans: 120%)
2. Samsung mobile phone is available for Rs.2500 cash or Rs.250 cash down payments followed by 4
equal installments. If the rate of interest charged is 25% per annum simple interest, calculated the
monthly installment: (Ans: Rs.520)
3. A sum of Rs.10 is lent to be returned in 11 monthly installments of Rs.1 each, simple interest. The rate
of interest is: (Ans: 21.818%)
4. An amount of Rs.2360 due at 12% simple interest repayable in 4 equal installments. What will be
annual installment payable by him? (Ans: Rs.500)
(OR)
What annual installment will discharge a debt of Rs.2360 due in 4 years at 12% p.a. simple interest?
5. Hiralal gave a loan of Rs.20 to Ramlal and recovered it at the rate of Rs.3.5 for eight months,
commencing from the end of 1st month. What is the effective rate of simple interest? (Ans: 60%)
6. Gopal borrows Rs.100000 from a bank at 10% p.a. simple interest and clears the debt in 5 years. If the
installments paid at the end of first, second, third and fourth years to clear the debt are Rs.10000,
Rs.20000, Rs.30000, Rs.40000 respectively, what amount should be paid at the end of the fifth year
to clear the debt? (Ans: Rs.30000)

Installments in Compound Interest


1. The population of Chandigarh is increases at a rate of 1% for 1st year, it decreases at the rate of 2%
for 2nd year and for 3rd year it again increases at the rate of 3%. Then what will be the population after
3 years if present population of Chandigarh is 45000? (Ans: 45877.23)
2. An amount of Rs.12820 due in 3 years hence is fully repaid in 3 annual installments starting after 1
1 2
year. The first installment is 2 the second installment and the second installment is 3 of the third
installment. If the rate of installment is 10% p.a. Find the first installment. (Ans: Rs. 2000)
3. A man buys a scooter on making a cash down payment of Rs.16224 and promises to pay two more
yearly installment of equivalent amount in next 2 years. If the rate of interest is 4% p.a. compounded
yearly, the cash value of the scooter is: (Ans: Rs. 46824)
4. A man borrows money from a finance company and has to pay it back in 2 equal half yearly
installments of Rs.4945 each. If the rate of interest charged at the rate of 15% p.a. compounded semi-
annually, find the principal and total interest paid. (Ans: Rs.1011)
5. Kusum borrowed money and returned it in 3 equal quarterly installments of Rs.4630.5 each. What
sum had she borrowed if the rate of interest was 20% p.a. compounded quarterly? (Ans: Rs.12610)
6. Gopal borrows Rs.100000 from a bank at 10% p.a. rate of compound interest and clears the debt in 5
years. If the installments paid at the end of 2nd, 3rd, 4th, 5th years to clear the debt are Rs.20000,
Rs.18800, Rs.21600 and Rs.44000 respectively, what was the amount paid at the end of 1st year?
(Ans: Rs.30000)
7. Gopal borrows Rs.x from Ankit at 8% annual interest. He then adds Rs.Y of his own money and lends
Rs.X+Y to Ishan at 10% annual interest. At the end of year, after returning Ankit’s due, the net interest
retained by Gopal is same as that accured to Ankit. On the other hand, had Gopal lent Rs.X+2Y to Ishan
at 10%, then the net interest retained by him would have increased by Rs.150. If all interests are
compounded annually, then find the value of X+Y. (Ans: Rs.4000)

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