What annual installment will discharge a debt of 1092 due in 3 years at 12% simple interest?
Answers
Answer:
Rs 1092 is the money you took as loan to buy a wrist watch(suppose) on installments and The first installment has to be paid after 1 year.That means if you took loan in january then you have to pay 1st installment in next january. Installments are supposed to be same for every year,,,,, suppose after first year u paid Rs x as 1st installment,so i have already paid Rs"x" to the bank and bank would be getting some more money as interest on Rs "x" will be with bank for remaining 2 yrs(2x*12/100)(since in 3 yrs i have to pay the loan amount).At the end of 2nd year u will be paying Rs "x" again and bank will get interest on Rs "x" for 1 year(1x*12/100),similarly. Finally At the end of 3rd year u will be paying Rs "x" again and bank will get interest on Rs "x" for 0(0) year.... Therefore overall u have paid :
Interest on Rs "x" for 2 year + 1 interest on Rs "x" for 0 year =1092 :
(x + 2x*12/100 )+ (x + x*12/100)+ (x+0)=1092
x = 325.
Step-by-step explanation: