# What Annual Payment will be Discharge?

What annual payment will discharge IN simple interest, a debt of Rs 580 due in 5 years at 8% p.a.?

- Rs 166.40
- Rs 65.60
- Rs 100
- Rs 120

**Answer: (3) Rs. 100**

**Explanation:-**

Let the annual payment be Rs. X

According to the question,

(Amount of X for 4 years) + (Amount of X for 3 years) + (Amount of X for 2 years) + (Amount of 2 years) + (Amount of X for 1 year) + X = 580

[X + (X x 4 x 8)/100] + [X + (X x 3 x 8)/100] + [X + X x 2 x 8/100] + [X + X x 1 x 8/100] + X = 580

[5 X + (32 X + 24 X + 16 X + 8 X)/100] = 580

5 X + 80 X/100 = 580

5 X + 4X /5 = 580

(5 x 5 X + 4 X)/5 = 580

29 X = 580 x 5

X = 580 x 5/29

X = 20 x 5

X = Rs. 100

Hence, the answer is (3) Rs. 100.