Question

The loan of Rs.34400 is repaid in 2 equal installments at the end of each year with a simple interest rate of 5% per annum. Find the amount of installment (Rs.)

• A. Rs.21,600
• B. Rs.19,360
• C. Rs.18,480
• D. Rs.17,560

Answer 1

The correct option is C

Rs.18,480

Let each installment be X, then

$34400=\frac{X}{\frac{21}{20}}+\frac{X}{\frac{11}{10}}$

$\Rightarrow 34400=X\left(\frac{220+210}{231}\right)$


$\Rightarrow$ X = 80 × 231 = Rs. 18,480

Hence, option (C) is the correct answer.