The annual payment of Rs. 600 in 5 years at the rate of 12% p.a. simple interest will discharge a debt of:
Answer & explanation
Correct answer: option 3
Total charge to be paid without interest = 600 × 5 = Rs.3000
Follow this pattern=
Let Installment = 100 100 100 100 100 = (Total 500)
Interest = 12 24 36 48
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Total = 100 + 112 + 124 + 136 + 148 = 620
So, 500 is given as 3000
then, 620 will be 3720