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 Ram borrowed a sum of money and returned it in 3 equal Quarterly installments of Rs 17576 each. Find the sum borrowed, if the rate of interest charged was 16 % per annum compounded as installment plan. Find also the total interest charged. [ Calculator, Method and examples ]Solution:Your problem -> Ram borrowed a sum of money and returned it in 3 equal Quarterly installments of Rs 17576 each. Find the sum borrowed, if the rate of interest charged was 16 % per annum compounded as installment plan. Find also the total interest charged.InstallAmt = 17576No of Installment = 3Rate = 4The amount of 17576 Rs paid at the end of 1st Year has its principal equal to  = 17576 / ( 1 + 4 / 100 ) = 17576 / ( 104 / 100 ) = 17576 × 25/26Similarly, for 2^(nd) Year = 17576 × (25/26)^2Similarly, for 3^(rd) Year = 17576 × (25/26)^3:. The total of the present values of the 3 Installment is Rs ( 17576 × 25/26 + 17576 × (25/26)^2 + 17576 × (25/26)^3 ) = 48775Total Amount Paid = 17576 × 3 = 52728Interest = Total Paid - Balance Amount = 52728 - 48775 = 3953

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