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Question : What is the amount (in INR) of debt that will be discharged in 6 equal instalments of INR 800 each, if the debt is due in 6 years at 5% per annum?

Option 1: 6,600

Option 2: 7,500

Option 3: 8,000

Option 4: 5,400


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: 5,400


Solution : Given:
Installment = INR $800$
Rate, $r$ = $5$%
Time, $t$ = $6$ years
Let the debt be $x$.
Installment $=\frac{\text{Debt×100}}{100×t+\frac{r×t(t-1)}{2}}$
⇒ $800=\frac{100x}{100×6+\frac{5×6(6-1)}{2}}$
⇒ $800=\frac{100x}{675}$
$\therefore x = 5400 $
Hence, the correct answer is 5,400.

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