Question

What equal installment of annual payment will discharge a debt which is due as $Rs.848$ at the end of $4years$ at $4$ per annum simple interest?

• A. $Rs.246$
• B. $Rs.200$
• C. $Rs.250$
• D. $Rs.225$

Answer 1

The correct option is B $Rs.200$

Given that,

Due=$₹848$

$T=4yrs$

$R=4$

We know that the annual payment that will discharge a debt

of $₹A$ in $T$ years at $R$ per annum is,

$=\frac{100A}{100T+\frac{RT(T-1)}{2}}$

$=\frac{100\times 848}{100\times 4+\frac{4\times 4(4-1)}{2}}$

$=\frac{100\times 848}{400+24}=\frac{100\times 848}{424}$

$=100\times 2=200$

Equal annual installment $=₹200$

Option $\text{B}$ is correct answer.