What annual payment will discharge a debt of ₹ 1696 in yr at 4% per annum?
Correct Answer: ₹ 400
Explanation:
Given, debt (p) = ₹ 1696, R = 4% T = 4 yr
According to the formula,
Annual payment = 100P / [100 x T + {RT (T - 1)/2}]
= (1696 x 100) / [4 x 100 + {(4 x 3 x 4)/2}]
= (1696 x 100) / 424
= ₹ 400
