The price of a cycle is Rs. 1661. A man purchased it by paying Rs. 400 as cash down payment and the balance in 3 half yearly equal instalments. If the rate of interest is 10% per annum compounded semi-annually, find the value of each instalment.

Dear student
The price of cycle =Rs 1661Amount of cash given=Rs400Amount to be paid=Rs1261Amount of First  installmentA=P1+R100n =420×1+101001=420×1101001=Rs462Amount of second installmentA=Rs462SimilarlyAmount of third installmentA=Rs462
Regards

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