Question

What annual payment will discharge a debt of Rs. $7620$ due in $3$ years at $16\frac{2}{3}$ per annum interest ?

• A. $5430$
• B. $4430$
• C. $3430$
• D. $2430$

Answer 1

The correct option is C $3430$

$\Rightarrow$ Let the amount of each installment be $x$.Then,

$\Rightarrow$ (P.W. of $Rs.x$ due 1 year)+(P.W. of $Rs.x$ due 2 years)+(P.W. of $Rs.x$ due 3 years) $=7620$

$\Rightarrow$ $\left[\frac{x}{(1+\frac{50}{3\times 100})}\right]$+$\left[\frac{x}{1+(\frac{50}{3\times 100}{)}^2}\right]$+$\left[\frac{x}{1+(\frac{50}{3\times 100}{)}^3}\right]=7620$

$\Rightarrow$ $\frac{6x}{7}+\frac{36x}{49}+\frac{216x}{343}=7620$

$\Rightarrow$ $294x+252x+216x=7620\times 343$

$\Rightarrow$ $x=\frac{7620\times 343}{762}=Rs.3430.$