Arithmetic Ability
Compound Interest

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Q.

What annual payment will discharge a debt of Rs.7620 due in 3years at16 2/3 % per annum interest?

View Answer

Correct choice: C

Explanation:

Let each installment be Rs.x. Then, (P.W. of Rs.x due 1 year hence) + (P.W of Rs.x due 2 years hence) + (P.W of Rs. X due 3 years hence) = 7620. [x/(1+(50/3x100))]+[x/1 +((50/3x100)2)]+[x1 +((50/3x100)3)] = 7620 6x/7+36x/49+216x/343=7620 294x + 252x + 216x = 7620 x 343 => x = 3430 Amount of each installment = Rs.3430
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