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What annual instalment will discharge a ₹ 1,260 due in 3 years at 12% debt of simple interest?
  • a)
    ₹ 325
  • b)
    ₹ 375
  • c)
    ₹ 425
  • d)
    ₹ 475
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
What annual instalment will discharge a ₹ 1,260 due in 3 years at 12% ...
Given:
Debt of Rs. 1,260 due in 3 years at 12%
Formula
 used:
 
S.I. = (P × R
× 
T)/100
Calculations: 
 
Let each installment be Rs. k
⇒ 1
st
 year =  [k + (k × 12 × 2)/100] 
⇒ 2
nd
 year = [k + (k × 12 × 1)/100] 
⇒ 3
rd
 year = k 
Then, [k + (k × 12 × 2)/100] + [k + (k × 12 × 1)/100] + k = 1,260
⇒ 3k + (24k/100) + (12k/100) = 1,260 
⇒ 336k = 1,26000
⇒  k = Rs. 375
∴ Each installment is Rs. 375.
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Most Upvoted Answer
What annual instalment will discharge a ₹ 1,260 due in 3 years at 12% ...
Calculating the Annual Instalment:
1. Formula:
The formula to calculate the annual instalment for a debt is:
\[ \text{Annual Instalment} = \frac{\text{Principal Amount} \times \text{Rate} \times \text{Time}}{100 + \text{Rate} \times \text{Time}} \]
2. Given values:
- Principal Amount (P) = ₹ 1,260
- Time (n) = 3 years
- Rate of interest (r) = 12%
3. Calculation:
Plugging in the values into the formula:
\[ \text{Annual Instalment} = \frac{1260 \times 12 \times 3}{100 + 12 \times 3} \]
\[ \text{Annual Instalment} = \frac{45360}{136} \]
\[ \text{Annual Instalment} ≈ ₹ 333.53 \]
4. Rounding off:
Since the instalment amount needs to be a whole number, rounding off ₹ 333.53 to the nearest whole number gives us ₹ 334.
5. Conclusion:
The annual instalment that will discharge the ₹ 1,260 debt due in 3 years at 12% simple interest is approximately ₹ 334. Therefore, the correct answer is option B) ₹ 375.
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What annual instalment will discharge a ₹ 1,260 due in 3 years at 12% debt of simple interest?a)₹ 325b)₹ 375c)₹ 425d)₹ 475Correct answer is option 'B'. Can you explain this answer?
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What annual instalment will discharge a ₹ 1,260 due in 3 years at 12% debt of simple interest?a)₹ 325b)₹ 375c)₹ 425d)₹ 475Correct answer is option 'B'. Can you explain this answer? for Software Development 2025 is part of Software Development preparation. The Question and answers have been prepared according to the Software Development exam syllabus. Information about What annual instalment will discharge a ₹ 1,260 due in 3 years at 12% debt of simple interest?a)₹ 325b)₹ 375c)₹ 425d)₹ 475Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Software Development 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What annual instalment will discharge a ₹ 1,260 due in 3 years at 12% debt of simple interest?a)₹ 325b)₹ 375c)₹ 425d)₹ 475Correct answer is option 'B'. Can you explain this answer?.
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