What equal installment of annual payment will discharge a debt which is due as Rs. 848 at the end of 4 years at 4% per annum simple interest ?
A. Rs. 200
B. Rs. 212
C. Rs. 225
D. Rs. 250
Answer: Option A
Solution(By Examveda Team)
Let the annual installment be Rs. x.Then,
$$ \Rightarrow \left[ {x + \left( {\frac{{x \times 3 \times 4}}{{100}}} \right)} \right] + $$ $$\left[ {x + \left( {\frac{{x \times 2 \times 4}}{{100}}} \right)} \right] + $$ $$\left[ {x + \left( {\frac{{x \times 1 \times 4}}{{100}}} \right)} \right] + $$ $$x = 848$$
$$\eqalign{ & \Leftrightarrow \frac{{28x}}{{25}} + \frac{{27x}}{{25}} + \frac{{26x}}{{25}} + x = 848 \cr & \Leftrightarrow 106x = 848 \times 25 \cr & \Leftrightarrow 106x = 21200 \cr & \Leftrightarrow x = 200 \cr} $$
Short Cut Method : The annual payment that will discharge a debt of Rs. A due in t years at the rate of interest r % p.a. is.
$$\eqalign{ & \frac{{100{\text{A}}}}{{100t + \frac{{rt\left( {t - 1} \right)}}{2}}} \cr & \therefore {\text{Annual installment}} \cr & = {\text{Rs}}{\text{.}}\left[ {\frac{{100 \times 848}}{{100 \times 4 + \frac{{4 \times 4 \times 3}}{2}}}} \right] \cr & = {\text{Rs}}{\text{.}}\left( {\frac{{100 \times 848}}{{424}}} \right) \cr & = {\text{Rs}}{\text{. }}200 \cr} $$
Related Questions on Interest
Find the simple interest on Rs. 5200 for 2 years at 6% per annum.
A. Rs. 450
B. Rs. 524
C. Rs. 600
D. Rs. 624
Rs. 1200 is lent out at 5% per annum simple interest for 3 years. Find the amount after 3 years.
A. Rs. 1380
B. Rs. 1290
C. Rs. 1470
D. Rs.1200
E. Rs. 1240
Interest obtained on a sum of Rs. 5000 for 3 years is Rs. 1500. Find the rate percent.
A. 8%
B. 9%
C. 10%
D. 11%
E. 12%
Rs. 2100 is lent at compound interest of 5% per annum for 2 years. Find the amount after two years.
A. Rs. 2300
B. Rs. 2315.25
C. Rs. 2310
D. Rs. 2320
E. None of these
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