Practicing Success
What annual instalment will discharge a debt of Rs.9,600 due in 5 years at 10% simple interest? |
Rs.1450 Rs.1550 Rs.1500 Rs.1600 |
Rs.1600 |
Let equal installment = 100 Rs Rate=12% Payable amount in First year= Principal = Rs 100 Payable amount in second year = Principal + Interest = 100 + 10% of 100 = 100+ 10 = Rs 110 Payable amount in third year = Principal + Interest = 100 + 20 % of 100 = 100+ 20 = Rs 120 Payable amount in fourth year = Principal + Interest = 100 + 30 % of 100 = 100+ 30 = Rs 130 Payable amount in fifth year = Principal + Interest = 100 + 40% of 100 = 100+ 40 = Rs 140 So payable amount after 5 years = 100 + 110 + 120 + 130 + 140 = Rs 600 ATQ 600 unit = 9600 Rs 1 unit = 16 ∴ 100 unit = Rs 1600 |