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.
