Question

If at the time of maturity Joseph receives ₹ 2000 as interest, then the monthly instalment is ______.

Options

• ₹ 1200

• ₹ 600

• ₹ 1000

• ₹ 1600

Answer 1

If at the time of maturity Joseph receives ₹ 2000 as interest, then the monthly instalment is ₹ 1000.

Explanation:

Given:

I = 2000

R = 8%

n = 2 years = 24 months

I = `P xx (n(n + 1))/(2 xx 12) xx R/100`

∴ `I = P xx (24 xx 25)/(2 xx 12) xx 8/100`

`I = P xx 600/24 xx 0.08`

I = P × 25 × 0.08

2000 = P × 2

`P = 2000/2`

P = ₹ 1000