A person borrow $8000 at 2.76% simple interest per annum.The principal and interest are to be paid in 10 monthly installments.If each installmeny is double the preceding one, the value of first and last installments are??A person borrow $8000 at 2.76% simple interest per annum.The principal and interest are to be paid in 10 monthly installments.If each installmeny is double the preceding one, the value of first and last installments are??

Answer 1

Principal and interest after 8 months
=8000(1+0.0276/12*10)=8184

Let a=initial repayment amount (n=1), then the repayment amount at month n
a(n)=a*r^(n-1) where r=2
Total repayment amount
Sum=a(1)+a(2)+...+a(10)
=a(r^10-1)/(r-1)
=1023a

Equate total amount owing with amount paid:
8184=1023a
Solve for a.