Question
What equal installment of annual payment will discharge a debt which is due as Rs. 848 at the end of 4 years at 4% per annum simple interest ?
Answer: Option B
Note : In such type of questions to save your valuable time follow the given below method.
$$\eqalign{
& {\text{Value of installment}} \cr
& {\text{ = }}\frac{{{\text{Principal}} \times {\text{100}}}}{{{\text{Time}} \times {\text{100}} + \left( {{{\text{t}}_{{\text{n - 1}}}} + {{\text{t}}_{{\text{n - 2}}}}...1} \right) \times {\text{Rate}}\% }} \cr
& {\text{Principal = Rs}}{\text{. 848}} \cr
& {\text{Rate = 4}}\% \cr
& {\text{Time = 4 year}} \cr
& {\text{Installment}} \cr
& {\text{ = }}\frac{{848 \times 100}}{{4 \times 100 + \left( {3 + 2 + 1} \right) \times 4}}{\text{ }} \cr
& {\text{ = }}\frac{{848 \times 100}}{{\left( {400 + 24} \right)}}{\text{ }} \cr
& = \frac{{848 \times 100}}{{424}} \cr
& {\text{ = Rs}}{\text{. 200}} \cr} $$
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Note : In such type of questions to save your valuable time follow the given below method.
$$\eqalign{
& {\text{Value of installment}} \cr
& {\text{ = }}\frac{{{\text{Principal}} \times {\text{100}}}}{{{\text{Time}} \times {\text{100}} + \left( {{{\text{t}}_{{\text{n - 1}}}} + {{\text{t}}_{{\text{n - 2}}}}...1} \right) \times {\text{Rate}}\% }} \cr
& {\text{Principal = Rs}}{\text{. 848}} \cr
& {\text{Rate = 4}}\% \cr
& {\text{Time = 4 year}} \cr
& {\text{Installment}} \cr
& {\text{ = }}\frac{{848 \times 100}}{{4 \times 100 + \left( {3 + 2 + 1} \right) \times 4}}{\text{ }} \cr
& {\text{ = }}\frac{{848 \times 100}}{{\left( {400 + 24} \right)}}{\text{ }} \cr
& = \frac{{848 \times 100}}{{424}} \cr
& {\text{ = Rs}}{\text{. 200}} \cr} $$
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