Correct Answer - Option 3 : 1200
Given:
A debt of 22800 due in 10 years at 20% simple interest
Formula used
If borrowed amount be B and it is paid in equal installments
B = na + (ra/100 × Y) × n(n-1)/2
Where Y= number of installments per annum
Calculation
We know that,
B = na + (ra/100 × Y) × n(n-1)/2
Where Y= number of installments per annum
a = annual installment
Here M = 22800, y=1, r =20, n=10,
Put the value,
22800 = 10 a + 20a/100 × 10(10 -1)/2
22800 = 10a + 9a
22800 = a[19]
a = 1200
Hence, annual installment = 1200