1.

What annual payment will discharge a debt of Rs.7620 due in 3 years at 16 2/3% per annum interest?

Answer»

Let each installment be Rs.x.  

Then,(P.W. of Rs.x due 1 year hence)+(P>W of Rs.x due 2 years hence)+(P.W of Rs. X due 3 years hence)=7620. 

x/(1+(50/3*100))+ x/(1+(50/3*100))2 + x/(1+(50/3*100))3 =7620 

(6x/7)+(936x/49)+(216x/343)=7620. 

294x+252x+216x=7620*343. 

x=(7620*343/762)=3430. 

Amount of each installment=Rs.3430.



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