What annual installment will discharge a debt of Rs. 35,455 due in three years at 12% simple interest per annum (Installments will be paid at the end of the years)(Round off to nearest Rupee)?
Rs. 10,552
The correct answer is Rs. 10,552.
35,455 is the final accumulated amount (debt plus interest) at the end of 3 years is the correct approach for this specific question, as it yields one of the provided options. The formula used here is a common approach for simple interest installment problems where installments are paid periodically to clear a lump sum due at a future date. Each payment reduces the effective principal earning interest (or, viewed from the end date, each payment accumulates interest).
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Important Questions from Installments
A computer is available for Rs. 39,000 on cash payment or Rs. 19,000 as cash payment followed by five monthly instalments of Rs. 4,200 each. What is the rate of interest per annum under the instalment plan?
What is the amount (in Rs.) of debt that will be discharged in 6 equal instalments of Rs. 800 each, if the debt is due in 6 years at 5% per annum?
A sum of Rs. P was borrowed and paid back in two equal yearly instalments, each of Rs. 35,280. If the rate of interest was 5% per annum and interest is compounding annually, then the value of P is ________.
A loan of Rs. 1,50,000 is availed with compound interest rate of 10% per annum for two years compounded annually. It is to be paid in equal yearly installments, and the installment is to be paid at the end of each year. The value of the equal yearly installment is : (Rounded off to two places of decimal)
- A computer is available for ₹75,300 cash or for ₹25,740 cash down payment and two equal half-yearly instalments. If the dealer charges interest at 20% p.a., compounded half-yearly, then the total interest to be paid by a customer who buys it in instalment scheme is:
