Multiple choice

Find the annual instalment that will discharge a debt of Rs. 17200 due in 4 years at 5% per annum simple interest. 4 वर्ष की अवधि में देय 5% वार्षिक साधारण ब्याज की दर पर 17200 रू. के ऋण के भुगतान के लिये वार्षिक किस्त क्या होगी?

  1. ₹ 3500

  2. ₹ 4000

  3. ₹ 3000

  4. ₹ 4500

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Each instalment earns simple interest for the remaining years. If annual instalment is x, then: first instalment (paid now) has no interest, second earns interest for 1 year, third for 2 years, fourth for 3 years. Total = x(1) + x(1 + 0.05) + x(1 + 0.10) + x(1 + 0.15) = x(1 + 1.05 + 1.10 + 1.15) = 4.3x = 17200, so x = 4000. Option A gives Rs. 15080, option C gives Rs. 12900, both insufficient.