What annual installment will discharge a debt of Rs. 6450 due in 4 years at 5% simple interest = ?

1Rs. 1500
2Rs. 1835
3Rs. 1935
4Rs. 1950

Answer:- 1

Explanation:-

Solution:

\begin{aligned} By using formula, \\ Installment \\ = \frac{6450 \times 100}{4 \times 100 + (3 + 2 + 1) \times 5} \\ = \frac{6450 \times 100}{4 \times 100 + (6) \times 5} \\ = \frac{6450 \times 100}{4 \times 100 + 30} \\ = \frac{6450 \times 100}{430} \\ = Rs . 1500 \\ Hence value of installment \\ =  Rs . 1500 \end{aligned}

$\eqalign{ & {\text{By using formula,}} \cr & {\text{Installment}} \cr & {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( {3 + 2 + 1} \right) \times 5}} \cr & {\text{ = }}\frac{{6450 \times 100}}{{4 \times 100 + \left( 6 \right) \times 5}} \cr & = \frac{{6450 \times 100}}{{4 \times 100 + 30}} \cr & = \frac{{6450 \times 100}}{{430}} \cr & = {\text{Rs}}{\text{. 1500}} \cr & {\text{Hence value of installment}} \cr & {\text{ = Rs}}{\text{. 1500}} \cr}$