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What annual instalment will discharge a debt of ₹6450 due in 4 years at 5% simple interest ?
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- ₹1500
- ₹1835
- ₹1935
- ₹1950
- ₹1500
Correct Option: A
Let each instalment be y Then,
| ⇒ |  | y + | y × 5 × 1 |  | + | | y + | y × 5 × 2 | | + | | y + | y × 5 × 3 | | + y = 6450 |
| 100 | 100 | 100 |
| ⇒ | | y + | y | | + | | y + | y | | + | | y + | 3y | | + y = 6450 |
| 20 | 10 | 20 |
| ⇒ | + | + | + y = 6450 | |||
| 20 | 10 | 20 |
| ⇒ | = 6450 | |
| 20 |
| ⇒ | = 6450 | |
| 20 |
| ⇒ y = | = ₹ 1500 | |
| 86 |
Second method to solve this question :
Here , A = ₹ 6450 , T = 4 years , R = 5%
| Equal instalment = | |
| T[200 + (T - 1) × R] |
| Equal instalment = | |
| 4[200 + (4 - 1) × 5] |
| Equal instalment = | |
| 4 × 215 |
| Equal instalment = | |
| 4 × 215 |
| Equal instalment = | |
| 215 |
Equal instalment = ₹ 1500
