Question
What annual installment will discharge a debt of Rs. 6450 due in 4 years at 5% simple interest = ?
Answer: Option A
$$\eqalign{
& {\text{By using formula,}} \cr
& {\text{Installment}} \cr
& {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( {3 + 2 + 1} \right) \times 5}} \cr
& {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( 6 \right) \times 5}} \cr
& = \frac{{6450 \times 100}}{{4 \times 100 + 30}} \cr
& = \frac{{6450 \times 100}}{{430}} \cr
& = {\text{Rs}}{\text{. 1500}} \cr
& {\text{Hence value of installment}} \cr
& {\text{ = Rs}}{\text{. 1500}} \cr} $$
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$$\eqalign{
& {\text{By using formula,}} \cr
& {\text{Installment}} \cr
& {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( {3 + 2 + 1} \right) \times 5}} \cr
& {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( 6 \right) \times 5}} \cr
& = \frac{{6450 \times 100}}{{4 \times 100 + 30}} \cr
& = \frac{{6450 \times 100}}{{430}} \cr
& = {\text{Rs}}{\text{. 1500}} \cr
& {\text{Hence value of installment}} \cr
& {\text{ = Rs}}{\text{. 1500}} \cr} $$
Was this answer helpful ?
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