Question

An amount of Rs. 6600 has to pay to a bank at the rate of 10% per annum simple interest in 3 years what will be each installment if he wants to pay in 3 installments at the same rate?

1. Rs. 2500
2. Rs. 2000
3. Rs. 3000
4. Rs. 2150
5. Rs. 2750

Answer 1

Correct Answer - Option 2 : Rs. 2000

Given:

Amount = Rs. 6600

Rate percentage = 10%

Time = 3 years

Formula used:

\({\rm{I}} = {\rm{\;}}\frac{{{\rm{Due\;debt\;}} \times {\rm{\;}}100}}{{100{\rm{\;}} \times {\rm{\;t\;}} + {\rm{\;}}\frac{{{\rm{R\;}} \times {\rm{\;t\;}} \times {\rm{\;}}\left( {{\rm{t\;}}--{\rm{\;}}1} \right)}}{2}}}\)

Where,

I = installment

t = time in year

R = rate percentage

Calculation:

I = (6600 × 100)/[100 × 3 + {10 × 3 × (3 – 1)}/2]

⇒ I = 6,60,000/ (300 +30)

⇒ I = 6,60,000/330

⇒ I = Rs. 2000

∴ Each installment will be Rs. 2000.