What annual instalment will discharge a debt of Rs. 3,658 due in four years at 12% simple interest per annum?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs.775.
Installment = (100P)/[100T + RT(T - 1)/2]
= (100 × 3658)/[100 × 4 + 12 × 4 × (4 - 1)/2]
= (100 × 3658)/[400 + 72]
= 365800/472
= 775