What annual payment will discharge a debt of ₹ 1092 due in 2 yr at 12% simple interest?
Correct Answer: ₹ 515
Explanation:
According to the formula,
Annual payment = 100P / [100 x T + {RT (T - 1)/2}]
= (1092 x 100) / [100 x 2 + {24 (2 - 1)/2}]
= (1092 x 100)/2012
= ₹ 515.09
≈ ₹ 515
