A person borrowed 2,000 at 5% annual simple interest repayable in 3 equal annual installments. What will be the annual installment?

Solution (By Examveda Team)

$$\eqalign{ & {\text{Amount after 3 years}} \cr & = 2000 + \frac{{2000 \times 5 \times 3}}{{100}} \cr & = 2000 + 300 \cr & = 2300 \cr & {\text{EMI}} = \frac{{A \times 100}}{{100 \times t + rt\left( {\frac{{t - 1}}{2}} \right)}} \cr & = \frac{{2300 \times 100}}{{100 \times 3 + 5 \times 3\left( {\frac{{3 - 1}}{2}} \right)}} \cr & = \frac{{2300 \times 100}}{{315}} \cr & = \frac{{2300 \times 20}}{{63}} \cr & = \frac{{46000}}{{63}} \cr & = 730\frac{{10}}{{63}} \cr} $$