What annual installment will discharge a debt of total amount ₹4725 in 3 years at 5% simple interest ?
Answer & explanation
Correct answer: option 2
Let each installment be x, then
⇒ x + {x + \(\frac{x × 5 × 1}{100}\)} + {x + \(\frac{x × 5 × 2}{100}\)} = 4725
⇒ \(\frac{5x}{100}\) + \(\frac{10x}{100}\) + 3x = 4725
⇒ \(\frac{315x}{100}\) = 4725
⇒ x = 1500