Find the annual installment that will discharge a debt of Rs. 4800 in 5 years at 10% simple interest per annum is?
Answer & explanation
Correct answer: option 3
Let each installment be x, then
⇒ x + {x + \(\frac{x × 10 × 1}{100}\)} + {x + \(\frac{x × 10 × 2}{100}\)} + {x + \(\frac{x × 10 × 3}{100}\)} + {x + \(\frac{x × 10 × 4}{100}\)} = 4800
⇒ \(\frac{11x}{10}\) + \(\frac{12x}{10}\) + \(\frac{13x}{10}\) + \(\frac{14x}{10}\) + x = 4800
⇒ \(\frac{60x}{10}\) = 4800
⇒ x = 800