Math Problem Statement
i. A person borrows Rs. 10,000 at 8% per annum simple interest and repays the loan in two equal instalments, one at the end of 3 years and the other at the end of 5 years. Inspect the amount of each instalment?
Solution
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Math Problem Analysis
Mathematical Concepts
Simple Interest
Present Value
Equation of Value
Formulas
Simple Interest formula: SI = P × R × T / 100
Present Value of an instalment: PV = X / (1 + r)^n
Equation of Value: Sum of present values of instalments = Principal amount
Theorems
Time Value of Money
Suitable Grade Level
Grades 9-12
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