Question

What annual installment will discharge a debt of Rs. 1092 due in 3 years at 12% simple interest?

Answer 1

Let each Installment be Rs. x

Then, ( x+ ((x121)/100)) + (x+ ((x122)/100) ) + x = 1092

((28x/25) + (31x/25) + x) = 1092

(28x+31x+25x)=(1092*25)

x= (1092*25)/84 = Rs.325.

Each installment = Rs. 325.