A man purchases an article for a certain price and promise to pay in two equal annual installments of Rs.735 at the rate of 16\(\frac{2}{3}\)% per annum. Find the price of article.
Answer & explanation
Correct answer: option 2
16\(\frac{2}{3}\)% = \(\frac{1}{6}\)
Principal : Installment
1st ⇒ 6 : 7
2nd ⇒ 36 : 49
* Installment amount for each year should be same*
Therefore,
Principal : Installment
1st ⇒ 6 : 7 ) × 7
2nd ⇒ 36 : 49 ) × 1
Principal : Installment
1st ⇒ 42 : 49
2nd ⇒ 36 : 49
Sum ⇒ 78 : 49 (Each Installment)
49 78
↓ ↓
×15 ×15
↓ ↓
735(given) 1170