Ravi borrowed ₹1,380 from a bank which he repaid in 6 years at the rate of 6% per annum simple interest. If payment was made in six equal instalment, then each instalment was:
₹200
The correct answer is ₹200.
Total Amount: The total amount to be repaid in a simple interest loan is the sum of the principal and the total simple interest accrued over the loan period: \text{Total Amount} = \text{Principal} + \text{Simple Interest} Equal Instalments: When a loan is repaid in equal instalments, the total amount due (Principal + Simple Interest) is divided equally by the number of instalments to find the amount of each payment. In this specific problem's context, the provided answer of ₹200 per instalment implies a total repayment of ₹1,200 over the 6 years.
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Important Questions from Installments
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