What annual installment will discharge a debt of rupees 1092 due in 3 years at 12% simple interest

Question

Solve this using the formula of annual payment.

The correct answer is: 325 Rupees

Complete step by step solution:Let the principal amount P = 1092It is given that T = 2, R = 12%We have the formula for annual payment …(i)On substituting the known values in (i), we get So, 325 Rupees is the annual instalment. (adsbygoogle = window.adsbygoogle || []).push({});