To buy a car, Sahil borrowed some amount at 10% simple interest rate. He has paid some loan amount but Rs. 1,81,500 is due which he has to pay in 3 years. What will be the annual installment (in Rs.)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 55,000.
Instalment = (P × 100)/[(N × 100) + {(N - 1) + …. + 1} × R)]
= (181500 × 100)/[(3 × 100) + {(3 - 1) + 1} × 10)]
= (181500 × 100)/[(300 + 3 × 10)]
= (181500 × 100)/330
= 55000