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This company has a policy to offer loan on easy installments and with less interest rate as compared to other financial institutions working in market.
This company has a policy to offer loan on easy installments and with less interest rate as compared to other financial institutions working in market. Currently the company has offered a plan which requires the borrowers to pay Rs.75, 000 at the end of each year for 10 years. The interest rate charged by the company on this type of lending is 12% compounded annually. You are required to calculate what amount will accumulate after 10 years if company works under this policy?
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