The annual payment of ₹1000 in 5 years at the rate of 10%p.a. simple interest will discharge a debt of what amount ?
Answer & explanation
Correct answer: option 3
The Best way to find the answer:
10% = \(\frac{1}{10}\) ⇒ *add one in every year.*
Year ⇒ 1st : 2nd : 3rd : 4th : 5th
10 : 11 : 12 : 13 : 14 ⇒ 60 (total)
1st year value is installment amount = 10R = 1000 (given)
Sum of ratio is total amount = 60R = 60 x 100 = 6000