Question

What annual instalment will discharge a debt of rs 1450 due after 5 years at 8 percentage simple interest?

Answer 1

Let the annual payment be Rs. x
Then
(Amt of x for 4 years) + (Amt of x for 3 years) + (Amt of x for 2 years) + (Amt of x for 1 year) + x = 580
[x+ (x*4*8)/100] + [x+ (x*3*8)/100] + [x+ (x*2*8)/100] + [x+ (x*1*8)/100] + x = 580

5x + [(32x + 24x + 16x + 8x)/100] = 580
Solve
x = 100