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Installments - class-X

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QuestionClick to flip

What annual instalment will discharge a debt of Rs. $2710$ due in $4$ years at $7%$ simple interest?

AnswerClick to flip back

Rs. $613$

💡 Explanation:

Let the annual installment be $x$

Now, $ x$ accumulates an interest of $7.1$ every year

$\implies$

$x$ deposited in first year becomes $1.21x$ in next $3$ years

$x$ deposited in second year becomes $1.11x$ in next $2$ years

$x$ deposited in first year becomes $1.07x$ in next $4$ years

$\implies1.21x+1.41x+1.07x+x=2710\ \implies 4.92x=2710\ \implies x=Rs.613$