Problems Based on Instalment

Introduction
1. Instalment Purchase Schemes: To increase their
sales, different business organisations offer different
schemes to the buyers to enable themto buy costly articles
even i f their income is very low. One such scheme is the
usialment scheme. The cost of the article bought is paid in
stalments.
2. In instalment scheme the buyer has to pay more
aecausein addition to the selling price, the buyer has to pay
interest also on it.
3. Cash Price: The amount for which the article can
x purchased onfull payment is calledcash price.
4. Cash Down Payment: While purchasing an article
mier instalment scheme, some payment has to be madeini-
mSh. It is calledcash down payment. The remaining amount
B paid in equal monthly, quarterly or annual instalements as
av be decided at the time of purchase.
Case-I: Based on Simple Interest
When the period over which the instalment scheme
s operative isless than a year. The payment is made in a
specified number of equal monthly instalments. Naturally we
calculate thesimple interest in such cases.
T\e I: Monthly instalment being given, to find the rate of
interest.
Il l ustrati ve Examples
Ei. 1: A coat is sold for Rs 60 or Rs 20 cash down payment
and Rs 8 per month for 6 months. Determine the rate
of interest.
Soln: Cash priceof the coat =Rs 60
Cash down payment =Rs 20
Amount paid in 6 instalments =Rs (8 x 6) =Rs 48
Total amount paid under instalment plan
=Rs20 +Rs48 =Rs68
Interest charged =Rs 68 - Rs 60 =Rs 8
Now wefind the principals for eachof the six months.
Principal for thefirst month =Rs 60 - Rs 20 =Rs 40
Principal for the second month =Rs 40 - Rs 8 =Rs 32
Principal for thethird month =Rs 32 - Rs 8 =Rs 24
Principal for thefourth month =Rs 24 - Rs 8 =Rs 16
Principal for thefifth month =Rs 16 - Rs 8 =Rs 8
Principal for thesixth month =Rs 8 - Rs 8 =Rs 0
.-. Total Principal =Rs 120
Therefore, interest on Rs 120 for 1 month or year
12 '
is Rs 8.
Rate %=
57x100 8x100
PxT
120x
12
8x100x12
=80%
120x1
Hence the rateof interest isSO%.
Ex2: A television is marked at Rs 3575 cash or Rs 1500 as
cash down payment and Rs 420 a month for 5 months.
Find the rate of interest for this instalment plan.
Soln: Cash price =Rs 3 575
Cash down payment =Rs 1500
Amount paid in 5 monthly instalments
=Rs(420x5) =Rs2100
.-. Total amount paid under instalment plan
=Rs 1500 +Rs2100 =Rs3600
.-. Interest charged =Rs 3600 - Rs 3575 =Rs 25
Theprincipal for each month is as under:
Principal for the lstmonth =Rs3575-Rs 1500
=Rs2075
Principal for the 2nd month =Rs 2075 - Rs 420
=Rsl655
Principal for the 3rd month =Rs 1655 - Rs 420
=Rs 1235
Principal for the 4th month =Rs 123 5 - Rs 420
=Rs815
Principal for the 5th month =Rs 815 - Rs 420
=Rs395
Total Principal =Rs 6175
Thefinal (sixth) instalment of Rs 420 consists of the
amount of Rs 395 and the interest of Rs 25 (Rs 395 +
Rs25 =Rs420).
14
PRACTICE BOOK ON QUICKER MATHS
225x100x12 600
= 54.55
4950x1 11
Hence the rate of interest is 54.55% pa
(ii) Cash priceof the refrigerator = Rs 3580
Cash down payment = Rs 1500
.-. Balance to be paid = Rs 2080
Monthly instalment = Rs 440
.-. Amount paid in 5 equal monthly instalments = Rs
(440x5) = Rs2200
.-. Interest charged = Rs 2200 - Rs 2080 = Rs 120
Principal for 1st month = Rs 2080
Principal for 2nd month = Rs 2080 - Rs 440 = Rs 1640
Principal for 3rd month = Rs 1640 - Rs 440 = Rs 1200
Principal for 4th month = Rs 1200 - Rs 440 = Rs 760
Principal for 5th month = Rs 760 - Rs 440 = Rs 320
Total principal for 1 month = Rs 6000
Thus, Rs 120 is the interest on Rs 6000 for 1 month or
^year
R =
7x100 120x100 120x100x12
PxT
6000 x
12
600x1
24
Hence the rate of interest is 24% pa
(iii) Cash priceof the typewriter = Rs 3600
Cash down payment = Rs 1200
.-. Balance to be paid = Rs 3600 - Rs 1200 = Rs 2400
Monthly instalment = Rs 280
.-. Amount paid in 10 equal monthly instalments = Rs
(280 x 10) = Rs2800
.-. Interest charged = Rs 2800 - Rs 2400 = Rs 400
Principal for 1 st month = Rs 2400
Principal for 2nd month = Rs 2400 - Rs 280 = Rs 2120
Principal for 3rd month = Rs 2120 - Rs 280 = Rs 1840
Principal for 4th month = Rs 1840 - Rs 280 = Rs 1560
Principal for 5th month = Rs 1560 - Rs 280 = Rs 1280
Principal for6th month = Rs 1280-Rs280 = Rs 1000
Principal for 7th month = Rs 1000 - Rs 280 = Rs 720
Principal for 8th month = Rs 720 - Rs 280 = Rs 440
Principal for 9th month = Rs 440 - Rs 280 = Rs 160
Principal for 10th month = Rs 160 - Rs 280=- Rs 120
Ignore the negativeprincipal
.-. Total principal for 1 month = Rs 11520
Thus, Rs 400 is the interest on Rs 11520 for 1 month
1
or year
12
7? =
7x100 400x100
PxT
400x100x12
11520x1
11520x
125
3
12
= 41.67
Hence, the rate of interest is 41.67% pa
(iv) Cash priceof the tape recorder = Rs 1600
Cash down payment = Rs 300
Balance to be paid = Rs 1600-Rs 300 = Rs 1300
Monthly instalment = Rs 175
Amount paid in 8 equal monthly instalments = Rs
(175 x8) = Rs 1400
.-. Interest charged = Rs 1400-Rs 1300 = Rs 100
Principal for 1 st month = Rs 1300
Principal for 2nd month = Rs 1300-Rs 175 = Rs 1125
Principal for 3rd month = Rs 1125- Rs 175 = Rs950
Principal for 4th month = Rs 950 - Rs 175 = Rs 775
Principal for 5th month = Rs 775 - Rs 175 = Rs 600
Principal for 6th month = Rs 600 - Rs 175 = Rs 425
Principal for 7th month = Rs 425 - Rs 175 = Rs 250
Principal for 8th month = Rs250-Rsl75 = Rs75
Total principal for 1 month = Rs 5500
Thus, Rs 100 is the interest on Rs 5500 for 1 month or
12
year
7? =
7x100 100x100
PxT
5500x
12
100x100x12 240
= 21.81
5500x1 11
Hence, the rate of interest charged is 21.8% pa
9. Cash priceof the article = Rs 100
Cash down payment = Rs 10
.-. Balance to be paid = Rs 100 - Rs 10 = Rs 90
Rate of interest charged = 48% pa
Interest on Rs 90 for 5 months or year is
12
90x x48
= Rs 12
100
; R s 90x5x48 = R s l g
12x100
Amount due = Rs 90+Rs 18 = Rs 108....(i)
Let the monthly instalment bex rupees
.-. At the end of 5th month:
1st instalment of Rsx will amount to
Rs
x +
xx x48
12
100
J
A = P +I = P +
PxTxR
100
= Rs
4x 29x
x + =Rs
25 J 25
Problems Based on Instalment 315
2nd instalment of Rsx will amount to
Rs
x +
3 ^
x x x48
12
100
= Rs x +
3x
25J
= Rs
J
3rd instalment of Rsx will amount to
Rs x +
2 ^
xx x48
12
100
Rs
2*"|
28*
25
27x
x + =Rs
. 25j 25
)
4th instalment of Rsx will amount to
Rs
x +
1 *
xx x48
12
100
= Rs x +
25
= Rs
26*
25
5th instalment of Rs * will amount to
Rs
* + -
* +0x48>l
100
Rsx
Total amount of 5 instalments at the end of 5 months
= Rs
Rs
29* 28* 27* 26*
+ + + +*
1, 25 25 25 25
29* +28* +27* +28* +25*
25
27* 135*
= R S -2T= R S 5
....(ii)
From(i) and (ii), we get
27*
= 108
108x5
* = = 20
5 27
Each instalment = Rs 20
Type 3: To find the annual payment to discharge a debt if the
rate per cent is given.
Theorem: The annual payment that will discharge a debt
ofRs A due in t years at the rate of interest r% per annum is
\QQA
Illustrati ve Example
Ex.: What annual payment will discharge adebt of Rs 770
due in 5 years, the rate of interest being 5% per an-
num?
Soln: Detail Method: Let the annual payment be P rupees.
The amount of Rs P in 4 years at 5%
100P +4x5P 120P
100 100
The amount of Rs P in 3 years at 5% =
The amount of Rs P in 2 years at 5%:
The amount of Rs P in 1 year at 5% =
115P
100
nop
100
105 P
100
Thesefour amounts together with the last annual
payment of Rs P will discharge the debt of Rs 770.
120P 115P HOP 105P
100
550 P
100
770
100 100
-+P = 770
100
770x100
P =
550
= 140
Hence, annual payment = Rs 140
Quicker Method: Applying the above theorem, we
have,
Annual payment
100x5 +
100x770
5x5(5-1)
fa 140
Exerci se
1. What annual instalment will discharge a debt of Rs 2210
duein 4 years at 7% simple interest?
a)Rs450 b)Rs500 c)Rs550 d)Rs575
2. What quarterly payment will discharge a debt of Rs 2120
in one year at 16% per annumsimple interest?
a)Rsl000 b)Rs400 c)Rs850 d)Rs500
3. What annual payment will discharge a debt of Rs193 50
due 4 years hence at the rateof 5% simple interest?
a)Rs4600 b)Rs3500 c)Rs4500 d)Rs4550
4. Find the annual instalment that will discharge a debt of
Rs 12900 duein 4 years at 5% per annumsimple interest.
a)Rs3500 b)Rs2500 c)Rs3000 d)Rs3200
5. Find the annual instalment that will discharge a debt of
Rs 5400 due in 5 years at 4% per annumsimple interest.
a)Rsl200 b)Rsl000 c)Rs800 d)Rsl050
6. What quarterly payment will discharge a debt of Rs 2280
due in two years at 16% per annumsimple interest?
a)Rs500 b)Rs450 c)Rs550 d)Rs250
(Bank P O Exam1989)
7. What annual payment will discharge a debt of Rs 580
due in 5 years, the rate being 8% per annum?
a)Rs 166.40 b)Rsl20 c)Rsl00 d)Rs65.60
Answers
1. b; Hint: Required annual payment
100x2210 100x2210
100x4 +
7x4( 4-1) 442
= Rs500
316
PRACTICE BOOK ON QUICKER MATHS
2. d; Hint: Here instalment is quarterly. Hence fromthe
16 . 0 /
question, we have, t =4 and r = - 4 /o
Now applying the given rule,
100x2120 100x2120
required answer
100x4 +
=Rs 500.
3. c; Hint: Required answer
100x19350
4 x 4(4 -1) 424
100x19350
100x4 +
5x4x3 430
=Rs4500.
4. c; Hint: Required answer
100x12900 100x12900
100x4 +
5x4(4-1) 430
=Rs 3000
5. b; Hint: Required answer
100x5400 100x5400
100x5 +
4x5x(5-l ) 540
:Rsl000.
6. d; Hint: Here, t =8 and r =4% [Since, payment is quar-
terly for 2 years]
Now, applying the given rule, we have the
required answer
100x2280 2280x100
100x8 +
8x7x4
912
=Rs 250.
7. c; Hint: Required answer
100x580 100x580
100x5 +
8x5x(5-l ) 500x580
=Rsl00
Case - 2: Based on Compound Interest
The problems of money lending in which the pay-
ment is made in instalments and the range normally is in
years. In such casescompound interest computations are
used.
Type I: To find each instalment when the instalments are
equal
Theorem: A sum of Rs P is to be paid back in n equal
annual instalments. If the interest is compounded annually
atR% per annum, then the value of each instalment is given
by
100
IQ0 + R
100
100 +/?
2 /
+ . . . +
V
100
100+/?
Il l ust rat i ve Exampl e
Ex: A sumof Rs 3 310 is to be paid back in 3 equal annual
instalments. How much is each instalment i f the inter-
est is compounded annually at 10% per annum.
Soln: First Method: Let each equal annual instalment be Re
1.
.-. The 1st instalment is paid after a year
.-. Principal of the 1st instalment
: R el x ! K R e^
11 11
A = P\l +
100
100 J 10
P = Ix
10
17
Similarly, the principal of 2nd instalment
A2
Relx Re
100
121
The principal of 3rd instalment
Relx
10
Re
1000
! 1331
Total of the three principals
= Rs
(10 00 1000
v l l + 121+ 1331
1210+1100+1000 3310
= Rs = Rs-
1331
3310
1331
When the principal is Rs ,f .
each instalment =Re 1
When the principal is Re1 each instalment
D i 1 3 3 1
=Relx
3310
When the principal is Rs 3310 each instalment
1331
=Rs
-x3310 =Rsi 33i
3310
.-. Each instalment =Rs 1331
Second Method: Let each equal annual instalment be
Rs x and Pl,P2,Pi, be respectively the principals for
the three instalments.
Thefirst instalment is paid after a year
.-. Principal (Pl) of thefirst instalment
10 \0x
xx-
11 11
Problems Based on Instalment 317
Similarly p2 = x
i n
Now Px + P2 + P3
i.e.
10
3310
lOx
2
ho]
+ x + X

11
01;
OU
10^
11
, 10 fio
1+ +
11 \
3310
= 3310
TioY , 10 100
x 1+ +
Ui A i i 121
3310
/ 10Y 121 + 110+ 1001
10Y 33]
U U U 21
121
= 3310
= 3310
11 121
x = 3310x x
10 331
1331
Hencetherequiredannual instalment = Rs 1331
Quicker Method: Applying theabovetheorem, we
havethe
3310
requiredannual instalment =J Q JQQ JQQQ"
TT + T2T+ 1331
_ 3310x1331
3310
/fr 1331-
T*pe I I : To find the Principal when each instalment is given.
TWorem: A man borrows some money on compound inter-
znd returns it in t years in n equal instalments. If the rate
Wmterest is R% and the yearly instalment is Rs X, then the
nt borrowed is given by
X
100
100+ /?
100
Uoo+/?
100
Uoo+/?j
: 1. To find thetotal interest chargedweusethefollow-
ing formula,
; X
( 100 >
*
f 100 "
2
f 100 ^
[l 00+ rt;
*
^100+ /?;
+ ....+
V100+ /?J
2. To calculatetheprincipal andinterest chargedwith
eachinstalment following formula is used.
Principal:
J 100 >
Forthe lstyear= (ioo + /?
For the2ndyear = RsX\
For thetthyear = X
Interest Charged:
( loo V
Uoo+/?,
( loo V
100+ /?
Interest in 1st instalment = ^* *
100
Interest in 2ndinstalment
- Rs X 1-
100+ /?,
100
100+ /?,
Interest in nthinstalment = ^s r
100
100+ /?,
Illust rat i ve Example
Ex: A man borrowed somemoney andpaid back in 3equal
annual instalmentsof Rs 2160 each. What sumdid he
borrow, i f therateof interest chargedby themoney
lender was 20%per annumcompoundedannually?
Find also the total interest charged. Also calculate
theprincipal and interest charged with eachinstal-
ment.
Soln: Detail Method
Amount of eachannual instalment = Rs 2160
Rateof interest = 20%p.a. Number of instalments = 3
Principal for the1st year = Rs
2160
1 +
20
100
= Rs 2160x- = Rs 1800
6
t ' r \
v A =
H
1+
\
IOOJ
\ 20> \
2160= p 1 +
I 100,
Principal for the2ndyear
=fa2160x
25
- 1 =/?s2160x = /?il500
K6) 36
Principal forthe3rd year
/ &2160x =/?5l250
216
- Rs 2160<| -
3 1 8 PRACTICE BOOK ON QUICKER MATHS
Amount borrowed =Sumof the principals for all the
three years =Rs (1800 +1500 +1250) =Rs 4550
Total interest charged
=Total amount of the three instalments - Amount
borrowed
=Rs (2160 * 3 - 4550) =Rs (6480 - 4550) =Rs 1930
Interest in 1st instalment
=1st instalment - Principal for 1st instalment
=Rs (2160-1800) =Rs 360
Interest in 2nd instalment
=2nd instalment - Principal for 2nd instalment
=Rs (2160-1500) =Rs 660
Interest in 3rd instalment
=3rd instalment - Principal for 3rd instalment
=Rs(2160-1250) =Rs910
Quicker Method: Applying the above theorem, we have
(i) Amount borrowed
2160
2160
100 100 ( 100
100+20 UOO+20) V100 + 20
5 25 125
+ +
6 36 216
=1800+1500+1250=Rs4550
(ii) Total interest charged =2160
=Rs (6480- 4550) =Rs 1930
, .5 25 125
3 H - + +
6 36 216
(iii) Interests - in
1st instalment =2160| 1 - -
= Rs 360
2nd instalment - 2 1 6 0
3rd instalment =2 1 6 0
(iv) Principal for the
I -
1-
25
36.
125
216
Rs 660
= Rs9lO
lstyear=Rs 2160x- =Rs 1800
6
25
2nd year =Rs 2160x =Rs 1500
36
125
3rd year =Rs 2\60x~ = Rs 1250
Type I I I : To find each instalment whenthe instalments are
not equal.
Theorem: A sum of Rs P is to be paid back in n annual
instalments. If the interest is compounded annually on the
balance at R% and is to be included in each instalment,
then the value of each instalment is given by the following,
Instalment at the end of 1 st year =Rs
Instalment at the endof 2nd year =Rs
Instalment at the end of 3rd year =Rs
Instalment at the endof 4th year =Rs
1 +
1 +
1 +
Rn
100
100
R(n-2)
100
R(n-3)~
100
Instalment at the end of nth year =Rs
1 +-
100
Note: Number of instalments =no. of years.
Now, we can alternatively write the above theorem as
follows.
Value of instalment at the endof required year
Sumwhich is to be paid back
No. of instalments
1 +
(Rate per cent) (no. of instalments - one less the year
after which instalment is payable)
100
Il l ust rat i ve Examples
Ex.1: A sum of Rs 7500 is to be paid back in 3 annua,
instalments. How much is each instalment, i f the in-
terest is compounded annually on the balance at 4t
and is to be included in each instalment.
Soln: The loan is to be paid in 3 annual instalments.
.-. Each instalment will beof Rs (7500- 3) or Rs 2500
together with the interest on the balance for 1 year
Amount payable at the end of 1 st year
=Rs 2500+4% of Rs 7500
=Rs2500 +Rs -i -x7500
100
=Rs 2500 +Rs 300 =Rs 2800
Balance at the end of first year
=Rs 7500 - Rs 2500 =Rs 5000
.-. Amount payable at the end of 2nd year
=Rs2500+4%ofRs5000
=Rs2500 +Rs *5000
=Rs 2500 +Rs 200 =Rs 2700
Problems Based on Instalment 323
Let each instalment be Rs x
Rate =16% pa - 8% half-yearly
.-. Principal for the 1 st instalment at the end of 1 st
half yearly =Rs g
1 + -
100
v A = P] 1 +
V
x = P 1 +
100J
100 (25)
Similarly, Principal forthe 2nd instalment
' 25^
J5_
100
= Rs
27
25
Principal for the 3rd instalment =Rs | ~ I x
Total principal for the three instalments
Rs
I t should be equal to Rs 50725
25 '25> 2 | '25>
3
x + x + \ X
27 ^27;
\
V 27J
1 2 5
1 + +
27
f25>
2~
{llj
=50725
25
27'
25 f, 25 625'. e n ^c
x 1 + + =50725
27 I 27 729,
25 ("729 + 675 + 625
27 % 729
=50725
25 2029 M W
=> xx =50725
27 729
50725x27x729 , ^0 0
=> x = =19683
25x2029
.-. Each instalment =Rs 19683
The sumis to be paid back in 4 annual instalments.
.-. Each instalment will be ofRs (5600 * 4)
ie Rs 1400 together with interest on the balance for
one year
.-. Amount payable at the end of 1 st year
=Rs 1400+ 8% ofRs 5600
=Rs 1400 + Rs I 5600X750"
=Rs 1400+ Rs 448 =Rs 1848
Balance at the end of 1st year
=Rs (5600 -1400) =Rs 4200
Amount payable at the end of 2nd year
=Rs 1400+ 8% ofRs 4200
Rs 1400+ Rs
_8_
100
x4200
=Rs 1400+ Rs 336 =Rs 1736
Balance at the endof 2nd year
=Rs (4200 -1400) =Rs 2800
Amount payable at the end of 3rd year
=Rs 1400+ 8% ofRs 2800
Rs1400 + Rs
_8_
100
x2800
=Rs1400 + Rs 224=Rs 1624
Balance at the endof 3rd year
=Rs(2800-1400) =Rs 1400
.-. Amount payable at the endof 4th year
=Rs 1400+ 8% ofRs 1400
Rs1400 + Rs
8
xl400
U0 0
=Rs1400 + Rs 112 =Rs 1512
Hence the four instalments are
Rs1848, Rs1736, Rs1624 andRs 1512
The sumis to be paid back in 3 annual instalments
.-. Each instalment will be ofRs (6000+ 3), ie Rs 2000
together with interest on the balance for one year
.-. Amount payable at the end of 1 st year
=Rs 2000 + 10% ofRs 6000
' 10
=Rs 2000 + Rs
-x6000
.100 )
=Rs 2000 + Rs 600 =Rs 2600
Balance at the end of 1 st year
=Rs (6000 - 2000)=Rs 4000
.-. Amount payable at the end of 2nd year
=Rs 2000 + 10% ofRs 4000
=Rs2000 + Rs
10 ^
x4000
100
=Rs 2000 + Rs 400 =Rs 2400
Balance at the endof 2nd year
=Rs 4000 - Rs 2000=Rs 2000
.-. Amount payable at the end of 3rd year
=Rs 2000+10% ofRs 2000
=Rs 2000 + Rs
10
100
x2000
=Rs 2000 + Rs 200 =Rs 2200
Hence the three instalments are: Rs 2600, Rs 2400 and
Rs2200.
3 2 6 PRACTICE BOOK ON QUICKER MATHS
15.
16.
17.
.-. Total principal =Px + P2
=Rs 1450+Rs 1250 =Rs 2700
Total amount paid =Rs (1682 * 2) =Rs 3364
.-. Total interest =Rs 3364 - Rs 2700 =Rs 664
Interest charged with first instalment
=Rs 2700x =Rs432
100
Interest charged with second instalment
=Rs664-Rs432 =Rs232
See the solution of Q. No. 12.
The quarterly instalment paid at the end of 1 st, 2nd
and 3rd quarter =Rs 4630.50
.-. Principal (Px) for thefirst quarter
=4630.50-
1+-
-Rs
100
4630.50+
V 100
: R s 4630.50 x
100
105
Rs
20
4630.50 x | = 4 4 1 0
Similarly, principal (P2) for the 2nd quarter
f 20^
=Rs 4630.50
20 20
=Rs 4630.50 x x
21 21
Rs4200
Principal (P3) for the 3rd quarter
=Rs 4630.50
'20^3
121
20 20 20
=Rs 4630.50 x - - x x =Rs4000
21 21 21
Total principal = Pi+P2+Pi
=Rs (4410 +4200+4000) =Rs 12610
Total amount paid =Rs (4630.50 x 3) =Rs 13891.50
.-. Total interest =Rs 13891.50-Rs 12610
=Rs 1281.50
Instalment paid at the end of 1st year =Rs 2600
.-. Principal of 1 st instalment
=R s 2600 + 1 +
100
18.
=Rs
2600+
=Rs
2600 x
H Q
Too
100
110
=Rs
2600x^ = R s ^
11) K S i i
2nd instalment paid at the endof 2nd year =Rs 2400
.-. Principal of 2nd instalment =Rs 2400 x
10
11
240000 10 10
Rs 2400x- xT T =R s
3rd instalment paid at the endof 3rd year =Rs 2200
.-. Principal of 3rd instalment
Rs 2200 <| H
10 10 10
=Rs 2200 x x x
11 11 11
Rs
200000
121
26000 240000 200000^1
+ +
11 121 121 J
:. Total principal =Rs
286000+240000+200000
;Rs
121
7260000
=Rs =Rs 6000
121
.-. The amount of loan taken =Rs 6000
Total amount paid=Rs (2600+2400+2200) =Rs 7200
Total interest paid =Rs (7200 - 6000) =Rs 1200
Let each instalment be ofRs x
Rate=13-% pa
40
%
pa
4 0 o/ 20
% = % half-yearly
.-. Principal {Px) for amount x at the end of 1 st six
20/3''
months =Rs * "5"
1 +-
100
P =/I +
lOOj