The amount of debt that will be discharged by 5 equal monthly instalments of ₹1,845 each, at the rate of 48% simple interest per annum, is: 

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SSC Selection Post 2024 (Matriculation Level) Official Paper (Held On: 25 Jun, 2024 Shift 1)
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  1. ₹9,936
  2. ₹9,468
  3. ₹9,048
  4. ₹9,963

Answer (Detailed Solution Below)

Option 4 : ₹9,963
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English Language (Matric Level) Sectional Test - 01
25 Qs. 50 Marks 12 Mins

Detailed Solution

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Given:

The amount of debt will be discharged by 5 equal monthly installments of ₹1,845 each, at the rate of 48% simple interest per annum.

Formula used:

Total debt = Sum of all installments (including interest)

Interest per installment = Principal × rate × time

Calculation:

Rate of interest = 48% per annum = 48 ÷ 12 = 4% per month

Total installments = 5

First installment interest for 4 months, second installment for 3 months, and so on till the last installment for 0 months.

Total interest = (1,845 × 4 × 4%) + (1,845 × 3 × 4%) + (1,845 × 2 × 4%) + (1,845 × 1 × 4%) + (1,845 × 0 × 4%)

⇒ Total interest = ₹295.2 + ₹221.4 + ₹147.6 + ₹73.8 + ₹0 = ₹738

Total amount of debt = 5 × ₹1,845 + ₹738

⇒ Total debt = ₹9,225 + ₹738 = ₹9,963

∴ The correct answer is option (4), ₹9,963.

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