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Question
Fill in the blank :
The intervening time between payment of two successive installments is called as ___________.
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Solution
The intervening time between payment of two successive installments is called as payment period.
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= ₹ `square`
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∴ Rate of interest per quarter = `square/4` = 4
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⇒ i = `square/100 = 4/100` = 0.04
n = Number of quarters
= 4 × 1
= `square`
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⇒ P' = `(square(1 + square))/0.04 [1 - (square + 0.04)^-square]`
= `(2000(square))/square [1 - (square)^-4]`
= 50,000`(square)`[1 – 0.8548]
= ₹ 7,550.40
