Question 1040283
A sum of ₹2460 was borrowed at 5% p.a. compound interest. 
The loan was paid in 2 equal installments in 2 years. Find the 
value of each installment.
<pre><b>
Let &#8377;x be the amount of each of the two installments.

At the end of the first year, the loan company added 5% interest
to what was owed.

&#8377;2460 + 0.05&#8729;&#8377;2460 = &#8377;2460 + &#8377;123 = &#8377;2583

The amount &#8377;x was then paid

Then the balance was &#8377;2583-&#8377;x

At the end of the second year, the loan company then added
5% interest to what was owed then.

Then the balance became &#8377;2583-&#8377;x + 0.05(&#8377;2583-&#8377;x)
And since the loan was paid in full at the end of the 
second year, that second payment was also &#8377;x, as
was the full amount owed which was &#8377;x 

&#8377;2583-&#8377;x + 0.05(&#8377;2583-&#8377;x) = &#8377;x

2583-x + 0.05(2583-x) = x

Solve that for x and get &#8377;1323.

Edwin</pre>