Answer : Option A

Explanation :

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Solution 1
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The amount needs to be repaid in 4 years = Rs.6450
Suppose Rs.x is paid annually to repay this debt
Then, amount paid after 1st year = Rs.x
$MF#%\text{Interest for this Rs.x for the remaining 3 years = }\dfrac{x \times 5 \times 3}{100}= \dfrac{15x}{100}$MF#%
Then, amount paid after 2nd year = Rs.x
$MF#%\text{Interest for this Rs.x for the remaining 2 years = }\dfrac{x \times 5 \times 2}{100}= \dfrac{10x}{100}$MF#%
Amount paid after 3rd year = Rs.x
$MF#%\text{Interest for this Rs.x for the remaining 1 year = }\dfrac{x \times 5 \times 1}{100}= \dfrac{5x}{100}$MF#%
Amount paid after 4th year = Rs.x and this closes the entire debt
$MF#%\begin{align}&=> x + \dfrac{15x}{100} + x + \dfrac{10x}{100} + x + \dfrac{5x}{100} + x = 6450\\\\ &=> 4x + \dfrac{30x}{100} = 6450\\\\ &=> 4x + \dfrac{3x}{10} = 6450\\\\ &=> 40x + 3x = 64500\\\\ &=> 43x = 64500\\\\&=> x = 1500\end{align}$MF#%
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Solution 2 (using formula)
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The annual instalment which will discharge a debt of D due in T years at R% simple interest per annum
$MF#%= \dfrac{\text{100D}}{\text{100T} + \dfrac{\text{RT(T-1)}}{2}}$MF#%