What annual installment will discharge a debt of Rs 1450 due after five year at 8 percent pa simple interest?

Answer 1

Well, isn't that a lovely question? To find the annual installment that will discharge a debt of Rs 1450 in five years at 8% simple interest, we can use a simple formula. Just divide the total amount by the number of years to find the annual payment. In this case, Rs 1450 divided by 5 years equals Rs 290. So, an annual installment of Rs 290 will help you clear that debt and bring a sense of peace and balance to your financial world.

Answer 2

X = 100 * P * (Y) / 100 T + { RT ( T -- 1 ) /2}

Meanings of the variables

X = Annual equal installment

P = Debt

T = Time

R = Interest Rate

Y = 1 for yearly installment

Y = 2 for half yearly installment

BY putting the values

X = 100*1450/100*5+{8*5*4/2}

X = 145000/500+80

X= 250

Logic :

After 1st year installment will b = installment + interest of 4 years = 250+250*8*4/100 = 250+80=330.

After 2nd year installment will b = installment + interest of 3 years = 250+250*8*3/100 = 250+60=310.

After 3 year installment will b = installment + interest of 2 years = 250+250*8*2/100 = 250+40=290.

After 4 year installment will b = installment + interest of 1 years = 250+250*8*1/100 = 250+20=270.

After 5 year installment b = 250

By adding these installment = 330+310+290+270+250 = 1450.