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What annual instalment will discharge a debit of Rs. 5,664 in 4 years at 12% simple interest?
Answer & Solution
Correct Answer:
Option
C
$$\eqalign{
& {\text{Annual instalment}} = \frac{{{\text{due debt}} \times 100}}{{100 \times t + rt\left( {\frac{{t - 1}}{2}} \right)}} \cr
& = \frac{{5664 \times 100}}{{100 \times 4 + 4 \times 12 \times \frac{3}{2}}} \cr
& = \frac{{5664 \times 100}}{{472}} \cr
& = {\text{Rs}}{\text{. }}1200 \cr} $$
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