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What annual installment will discharge a debt of Rs. 3,270 due in 3 years at 9% per annum simple interest?
Answer & Solution
Correct Answer:
Option
C
$$\eqalign{
& R = 9\% \cr
& P = 3270 \cr
& t = 3 \cr
& {\text{EMI}} = \frac{{P \times 100}}{{100t + \left[ {\left( {t - 1} \right) + \left( {t - 2} \right)\,...} \right] \times R}} \cr
& = \frac{{3270 \times 100}}{{100 \times 3 + \left[ {2 + 1} \right] \times 9}} \cr
& = \frac{{3270 \times 100}}{{327}} \cr
& = 1000 \cr} $$
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