What annual instalment will discharge a debit of Rs. 5,664 in 4 years at 12% simple interest?

A. Rs. 1,230

B. Rs. 1,210

C. Rs. 1,200

D. Rs. 1,220

Answer: Option C

Solution(By Examveda Team)

$$\eqalign{ & {\text{Annual instalment}} = \frac{{{\text{due debt}} \times 100}}{{100 \times t + rt\left( {\frac{{t - 1}}{2}} \right)}} \cr & = \frac{{5664 \times 100}}{{100 \times 4 + 4 \times 12 \times \frac{3}{2}}} \cr & = \frac{{5664 \times 100}}{{472}} \cr & = {\text{Rs}}{\text{. }}1200 \cr} $$