Question

Sumit borrowed  Rs. 33,000 which has to be paid in three equal installments at simple interest. Calculate the value of annual installment if the rate of interest is 10% per annum.

1. Rs. 9900
2. Rs. 10,000
3. Rs. 12,000
4. Rs. 14,000
5. None of these.

Answer 1

Correct Answer - Option 5 : None of these.

Given:

Principal = Rs. 33,000

Time = 3 years

Rate = 10% per annum at SI

Formula used:

A = nx + {(n – 1) + (n – 2) +(n – 3) + …}Rx/100

where A = Total amount paid

x = value of each instalment

n = time for instalment

R = Rate (%)

Calculations:

SI = (33000 × 10 × 3)/100

⇒ Rs. 9900

A = Rs. (33,000 + 9900)

⇒ Rs. 42,900

42900 = 3x + {(3 – 1) + (3 – 2)}10x/100

⇒ 42900 = 3x + {(2 + 1 )10x}/100

⇒ 42900 = 3x + (30x/100)

⇒ 42900 = 330x/100

⇒ 42900/330 = x/100

⇒ 130 = x/100

⇒ 13000 = x

∴ Annual instalment is Rs. 13,000