What annual installment will discharge a debt of Rs. 6450 due in 4 years at 5% simple interest = ?

Solution(By Examveda Team)

$$\eqalign{ & {\text{By using formula,}} \cr & {\text{Installment}} \cr & {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( {3 + 2 + 1} \right) \times 5}} \cr & {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( 6 \right) \times 5}} \cr & = \frac{{6450 \times 100}}{{4 \times 100 + 30}} \cr & = \frac{{6450 \times 100}}{{430}} \cr & = {\text{Rs}}{\text{. 1500}} \cr & {\text{Hence value of installment}} \cr & {\text{ = Rs}}{\text{. 1500}} \cr} $$