What annual instalment will discharge a debt of Rs. 35,455 due in three years at 12% simple interest per annum (Installments will be paid at the end of the year) (Round off to nearest Rupee)?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 10,552.
Instalment = (P × 100)/[(N × 100) + {(N - 1) + …. + 1} × R)]
= (35455 × 100)/[(3 × 100) + {(3 - 1) + 1} × 12)]
= (35455 × 100)/[(300 + 3 × 12)]
= (35455 × 100)/336
= 10522 (approx)