Home » Aptitude » Simple interest » Question
  1. What annual instalment will discharge a debt of ₹6450 due in 4 years at 5% simple interest ?
    1. ₹1500
    2. ₹1835
    3. ₹1935
    4. ₹1950
Correct Option: A

Let each instalment be y Then,

y + y × 5 × 1 + y +y × 5 × 2 + y +y × 5 × 3 + y = 6450
100100100

y + y + y + y + y + 3y + y = 6450
201020

21y
+
11y
+
23y
+ y = 6450
201020

21y + 22y + 23y + 20y
= 6450
20

86y
= 6450
20

⇒ y =
6450 × 20
= ₹ 1500
86

Second method to solve this question :
Here , A = ₹ 6450 , T = 4 years , R = 5%
Equal instalment =
A × 200
T[200 + (T - 1) × R]

Equal instalment =
6450 × 200
4[200 + (4 - 1) × 5]

Equal instalment =
6450 × 200
4 × 215

Equal instalment =
6450 × 200
4 × 215

Equal instalment =
6450 × 50
215

Equal instalment = ₹ 1500



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