What annual instalment will discharge a debt of ₹5,664 in 4 years at 12% simple interest?

This question was previously asked in
SSC CGL 2022 Tier-I Official Paper (Held On : 02 Dec 2022 Shift 3)
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  1. ₹1,230
  2. ₹1,210
  3. ₹1,200
  4. ₹1,220

Answer (Detailed Solution Below)

Option 3 : ₹1,200
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Detailed Solution

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Given:

A = amount = ₹5,664

T = time = 4 years

R = rate of interest = 12%

Formula used:

Installment = (100 × A)/{100 × T + RT(T – 1)/2}

Calculation:

Installment = (100 × 5664)/(100 × 4 + 12 × 4 × 3/2)

⇒ (100 × 5664)/(400 +72)

⇒ 100 × (5664/472)

100 × 12

⇒ 1200

∴ The annual instalment will be ₹1,200.

Mistake Points As per SSC, they assume the debt amount and solve the question.

The above is a Previous year's question, and SSC holds this solution correct.

Refer to the solution carefully.

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