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What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?
A ₹250
₹225
c ₹200
D ₹212?
A ₹250
₹225
c ₹200
D ₹212?
Most Upvoted Answer
What equal installment of annual payment will discharge a debt which i...
Calculation of Equal Installment of Annual Payment
- Given data:
- Principal amount (P) = ₹848
- Time (n) = 4 years
- Rate of interest (R) = 4%
Formula for calculating Equal Installment of Annual Payment:
\[
P = \frac{A \times n + \frac{n(n+1)}{2} \times I}{n}
\]
Where,
P = Principal amount
A = Annual payment
n = Number of years
I = Interest
Calculation:
- Simple interest for 4 years:
\[
I = P \times n \times R
\]
\[
I = 848 \times 4 \times \frac{4}{100}
\]
\[
I = ₹135.68
\]
- Substituting the values in the formula:
\[
848 = \frac{A \times 4 + \frac{4 \times 5}{2} \times 135.68}{4}
\]
\[
848 = \frac{4A + 40 \times 135.68}{4}
\]
\[
848 = \frac{4A + 5427.2}{4}
\]
\[
3392 = 4A + 5427.2
\]
\[
4A = 2035.2
\]
\[
A = \frac{2035.2}{4}
\]
\[
A = ₹508.8
\]
Therefore, the equal installment of annual payment required to discharge the debt is ₹508.80. So, the closest option provided is ₹500.
- Given data:
- Principal amount (P) = ₹848
- Time (n) = 4 years
- Rate of interest (R) = 4%
Formula for calculating Equal Installment of Annual Payment:
\[
P = \frac{A \times n + \frac{n(n+1)}{2} \times I}{n}
\]
Where,
P = Principal amount
A = Annual payment
n = Number of years
I = Interest
Calculation:
- Simple interest for 4 years:
\[
I = P \times n \times R
\]
\[
I = 848 \times 4 \times \frac{4}{100}
\]
\[
I = ₹135.68
\]
- Substituting the values in the formula:
\[
848 = \frac{A \times 4 + \frac{4 \times 5}{2} \times 135.68}{4}
\]
\[
848 = \frac{4A + 40 \times 135.68}{4}
\]
\[
848 = \frac{4A + 5427.2}{4}
\]
\[
3392 = 4A + 5427.2
\]
\[
4A = 2035.2
\]
\[
A = \frac{2035.2}{4}
\]
\[
A = ₹508.8
\]
Therefore, the equal installment of annual payment required to discharge the debt is ₹508.80. So, the closest option provided is ₹500.
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What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?A ₹250₹225c ₹200D ₹212?
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What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?A ₹250₹225c ₹200D ₹212? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?A ₹250₹225c ₹200D ₹212? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?A ₹250₹225c ₹200D ₹212?.
What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?A ₹250₹225c ₹200D ₹212? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?A ₹250₹225c ₹200D ₹212? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What equal installment of annual payment will discharge a debt which is due as 848 at the end of 4 years at 4% per annum simple interest?A ₹250₹225c ₹200D ₹212?.
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