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Q.
What annual instalment will discharge a debt of Rs 1092 due in 3 years at 12% simple interest?
A.
Rs.325
B.
Rs.545
C.
Rs.560
D.
Rs.550
View Answer
Correct choice: A
Explanation:
Let each instalment be Rs.x . 1st year = [x + (x * 12 * 2)/100] 2nd year = [ x + (x *12 * 1)/100] 3rd year = x Then, [x + (x * 12 * 2)/100] + [ x + (x *12 * 1)/100] + x =1092 3x + ( 24x/100 ) + ( 12x/100 ) = 1092 336x =109200 Therefore, x = 325 Each instalment = Rs. 325
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