Maths-
General
Easy

Question

What annual instalment will discharge a debt of Rs 1092 due in 3 years at 12% simple interest?

Hint:

Solve this using the formula of annual payment.

The correct answer is: 325 Rupees


    Complete step by step solution:
    Let the principal amount P = 1092
    It is given that T = 2, R = 12%
    We have the formula for annual payment A P equals fraction numerator 100 P over denominator 100 cross times T plus fraction numerator R T left parenthesis T minus 1 right parenthesis over denominator 2 end fraction end fraction…(i)
    On substituting the known values in (i), we get A P equals fraction numerator 100 cross times 1092 over denominator 100 cross times 3 plus fraction numerator 12 cross times 3 left parenthesis 3 minus 1 right parenthesis over denominator 2 end fraction end fraction

    not stretchy rightwards double arrow A P equals fraction numerator 109200 over denominator 300 plus 72 over 2 end fraction
    not stretchy rightwards double arrow A P equals 109200 over 336 equals 325
    So, 325 Rupees is the annual instalment.

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