Question

What amount will discharge the debt of Rs 6300 due in 2 years at the rate of interest 10% simple Interest?
1. Rs. 2000
2. Rs. 3000
3. Rs. 3150
4. Rs. 3300

Answer 1

Correct Answer - Option 2 : Rs. 3000

Given:

Amount = Rs. 6300

Time = 2 years

Rate of Interest = 10%

Formula Used:

Installment = \(\frac{100\ \times \ A}{100 \ \times \ t \ + \ R\ \times \ t(\frac{t \ - \ 1}{2})}\)

Where, A = Amount

t = Time

R = Rate of Interest

Calculation:

Installment = \(\frac{100\ \times \ A}{100 \ \times \ t \ + \ R\ \times \ t(\frac{t \ - \ 1}{2})}\)

⇒ \(\frac{100\ \times \ 6300}{100 \ \times \ 2 \ +\ 10 \ \times \ 2(\frac{2 \ - \ 1}{2})}\)

⇒ \(\frac{630000}{200 \ + \ \frac{20}{2}}\)

⇒ 630000/210 = 3000

∴ The Installment to clear debt is Rs. 3000