Question

Find the installment amount (in Rs.) if the amount of Rs.6250 is paid in 2 equal installments, each paid at the end of year with the simple interest rate of 20% for the 1st year and 10% for the 2nd year.

• A. 3500
• B. 3600
• C. 3800
• D. 3900

Answer 1

The correct option is D 3900

Let each installment be Rs. X, then

6250=
$\frac{X}{\frac{120}{100}}+\frac{X}{\frac{130}{100}}$

$\Rightarrow$ 6250 =

$\frac{X}{\frac{6}{5}}+\frac{X}{\frac{13}{10}}$

$\Rightarrow$ 6250 = X

$\frac{125}{78}$

$\Rightarrow$ X = 3900

Hence, option (D) is the correct answer.