SI / CI :
1) what annual installment will discharge a debt of Rs 1815 due in 3 years at 10% simple interest ?
a - 500
b - 520
c - 550
d - 580
4) What annual installment will discharge a debt Rs 717.60 due in 4 years at 20% p.a simple interest, if installments are paid at the end of each year?
a - 128
b - 134
c - 138
d - 144
Kindly do post the explanations. thanks puys
soln....
1. there will be three installments.....
on 1st installment he will get 2 years interest
on 2nd installment he will get 1 year interest
on 3rd installment he will get no interest as it would be final installment
let each installment be x
interest on 1st installment for the vendor = 0.2x=> amount =1.2 x
interest on 2nd installment for the vendor = 0.1x=> amount =1.1 x
3rd installment = x
so total money the vendor will make from 3 installments = 3.3 x =1815
x=550
4. there will be four installments.....
on 1st installment vendor will get 3 years interest
on 2nd installment vendor will get 2 year interest
on 3rd installment vendor will get 1 year interest
on 4th installment vendor will get no interest as it would be final installment
let each installment be x
interest on 1st installment for the vendor = 0.6x=> amount =1.6 x
interest on 2nd installment for the vendor = 0.4x=> amount =1.4 x
interest on 2nd installment for the vendor = 0.2x=> amount =1.2 x
4th installment = x
so total money the vendor will make from 3 installments = 5.2 x =717.6
x=138
3) A person borrowed a certain sum at the rate of 20% p.a compound interest. He paid a total of Rs 4000 in two annual equal installments. what is the interest paid ?
a - 955
b - 944
c - 933
d - 922
could anyone tell me what's wrong my approach
let loan be P and compounded annually for 2 years on 20 % means
A= P(1.2)^2 =1.44 P
Now let installment be equal to x
x=4000
interest on 1st installment =0.2x => amount =1.2x= 4800
no interest on 2nd installment so amount =4000
total =8800
8800 =1.44 P
P = 6111.11
interest =8000-6111.11 = 1888.888
where am i wrong