-
The annual payment of ₹ 160 in 5 yr at 5 % per annum simple interest will discharge a debt of
-
- ₹ 980
- ₹ 880
- ₹ 440
- ₹ 220
- None of the above
Correct Option: B
Given, annual payment = ₹ 160
R = 5% T = 5 yr debt (p) = ?
According to the formula.
Annual payment = 100P / [100 x T + {RT (T - 1)/2}]
⇒160 = 100P / [5 x 100 + {(5 x 4 x 5)/2}]
⇒ 160 = 100P/550
∴ P = (550 x 160) / 100
= 55 x 16 = ₹ 880
