Find the amount of equal annual instalment, which will discharge a debt of ₹40,376 due in 4 years at the rate of 2% p.a. simple interest.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹9,800.
Installment for first year = x
Installment for second year = 1.02x
Installment for the third year = 1.04x
Installment for fourth year = 1.06x
Total amount to be paid = x + 1.02x + 1.04x + 1.06x = 4.12x
⇒ 4.12x = 40376
⇒ x = ₹9800