An annual instalment of ₹3,500 will discharge a debt of ₹16,310 due in 4 years at y% simple interest per annum. What is the value of y? [Note: Instalments will be paid at the end of Year 1, Year 2, Year 3, and Year 4].
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 11.
SI =
Total amount paid = Sum of installments including interest
According to the question,
⇒ 4 × 3500 + 3500 × y%[3 + 2 + 1 + 0] = 16310
⇒ 14000 + + 35y × 6 = 16310
⇒ 35y × 6 = 2310
⇒ y = 11