What annual payment will discharge a debt of Rs. 6450 due in 4 years at 5% per annum simple interest?a)Rs. 1400b)Rs. 1500c)Rs. 1550d)Rs. 1600Correct answer is option 'B'. Can you explain this answer?

Question

Answer

Calculation of Annual Payment to Discharge Debt:
- Given variables:
- Principal amount (P) = Rs. 6450
- Time period (n) = 4 years
- Rate of interest (R) = 5% per annum

Formula for calculating total amount to be paid:
- Total amount to be paid (A) = P + (P * R * n)

Substitute the given values into the formula:
- A = 6450 + (6450 * 5/100 * 4)
- A = 6450 + (6450 * 0.05 * 4)
- A = 6450 + (6450 * 0.2)
- A = 6450 + 1290
- A = Rs. 7740

Annual Payment to discharge the debt:
- Annual Payment = Total amount / Time period
- Annual Payment = 7740 / 4
- Annual Payment = Rs. 1935

Approximate nearest option:
- The closest option to Rs. 1935 is Rs. 1500 (Option B).
Therefore, the correct annual payment to discharge the debt of Rs. 6450 due in 4 years at 5% per annum simple interest is Rs. 1500.

Similar Teaching Doubts

The simple and compound interest that can be earned in two years at the same rate is Rs 4000 and Rs 4180 respectively. What is the rate (percent per annum) of interest?

A person lent Rs. 5,000 partly at the rate of 4 percent and partly at the rate of 5 percent per annum, at simple interest for purchased a wristwatch. The total interest after 2 years is Rs. 440. The sum of money lent at each of the above rates is to be divided in the ratio

A person lent certain sum of money at 5% per annum simple interest and in 15 years the interest amounted to Rs 500 less than the sum lent. What was the sum lent?

The SI and CI that can be earned by a man in two years at the same rate is Rs 8000 and Rs 8360 respectively. If he gives a loan of Rs 15000 to his friend at the same rate (percent per annum) of interest at simple interest, how much will he earn from his friend in 3 years?

The simple Interest on a sum of money will be Rs. 600 after 10 years. If the principal is trebled after 5 year, the total interest at the end of 10 years will be.

Top Courses for Teaching

Suggested Free Tests

Related Content

Schools

Competitive Examinations

Quick Access Links

Technical Exams