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

Question

Hint:

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.

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