Q. What annual instalment will discharge a debt of Rs 1092 due in 3 years at 12% simple interest?
✅ Correct Answer: (A)
Rs.325
Explanation: Let each instalment be Rs.x .
1st year = [x + (x * 12 * 2)/100]
2nd year = [ x + (x *12 * 1)/100]
3rd year = x
Then, [x + (x * 12 * 2)/100] + [ x + (x *12 * 1)/100] + x =1092
3x + ( 24x/100 ) + ( 12x/100 ) = 1092
336x =109200
Therefore, x = 325
Each instalment = Rs. 325
Explanation by: Chandani
Let each instalment be Rs.x .
1st year = [x + (x * 12 * 2)/100]
2nd year = [ x + (x *12 * 1)/100]
3rd year = x
Then, [x + (x * 12 * 2)/100] + [ x + (x *12 * 1)/100] + x =1092
3x + ( 24x/100 ) + ( 12x/100 ) = 1092
336x =109200
Therefore, x = 325
Each instalment = Rs. 325
1st year = [x + (x * 12 * 2)/100]
2nd year = [ x + (x *12 * 1)/100]
3rd year = x
Then, [x + (x * 12 * 2)/100] + [ x + (x *12 * 1)/100] + x =1092
3x + ( 24x/100 ) + ( 12x/100 ) = 1092
336x =109200
Therefore, x = 325
Each instalment = Rs. 325