plz solve this...

[Target MA]

What annual instalment will discharge a debt of Rs. 1092 due in 3 years at 12%
simple interest?
a) Rs.300
b) Rs.225
c) Rs.400
d) Rs.325

[Erika]

acc to Simple Int. it is 393.12. But thats not in the options. in case we round of, we may choose 400. This is what i think.

[rohan]

i m getting 325

[laracroft]

Hey Rohan !! How did u get 325?? Please give the solution ??

[Target MA]

plz give the solution..

[Prerna Rakheja]

Let each yearly instalment be X which is paid at the end of each year
Total Amount to be paid at the end of 3 years = 1092
As he pays X at the end of year one, he is exempted from payment of interest over X for the next two years i.e. X*12*2/100
He pays X at the end of year 2, thus further exempted from interest of X*12*1/100
Net amount to be repaid = 1092 - (X*2*12/100) - (X*1*12/100)
The above amount should equal 3X (total amount paid)

On solving it gives X = 325