Question

A man borrow Tk.60,000 from another man at the rate of 6 percent compound interest on condition that

he will repay the money in 8 equal installments. What will be the size of the installment?

Answer 1

V=Tk.60,0000, r$=6\%$ ,n=8

$V=\frac{A}{r}[1-(1+r)^{-n}]$

$Tk.60,000=\frac{A}{0.06}[1-(1+0.06)^{-8}]$

$Tk.60,000=\frac{A}{0.06}[1-0.63]$

$Tk.60,000×0.06=0.37A\\A=\frac{3600}{0.37}=9729.8\approx Tk.9730$