What annual installment will discharge a debt of Rs. 3,270 due in 3 years at 9% per annum simple interest?

A. Rs. 1,090

B. Rs. 1,050

C. Rs. 1,000

D. Rs. 1,075

Answer: Option C

Solution(By Examveda Team)

$$\eqalign{ & R = 9\% \cr & P = 3270 \cr & t = 3 \cr & {\text{EMI}} = \frac{{P \times 100}}{{100t + \left[ {\left( {t - 1} \right) + \left( {t - 2} \right)\,...} \right] \times R}} \cr & = \frac{{3270 \times 100}}{{100 \times 3 + \left[ {2 + 1} \right] \times 9}} \cr & = \frac{{3270 \times 100}}{{327}} \cr & = 1000 \cr} $$