What annual installment will discharge a debt of Rs.10750 due in 4 years at the rate of 5% simple interest?OptionsRs.2000Rs.2500Rs.2400Rs.2800

To solve this problem, we need to use the formula for simple interest which is I = PRT/100, where I is the interest, P is the principal amount (the initial amount of money), R is the rate of interest, and T is the time in years.

Given: P = Rs.10750 (the debt) R = 5% (the rate of interest) T = 4 years (the time)

We need to find the annual installment (A) that will discharge the debt. This means we need to find the amount of money that needs to be paid each year to completely pay off the debt in 4 years.

First, we need to calculate the total amount to be paid back, which includes both the principal and the interest.

Using the formula for simple interest, we can calculate the interest (I):

I = PRT/100 I = 10750 * 5 * 4 / 100 I = Rs.2150

The total amount to be paid back is the sum of the principal and the interest:

Total = P + I Total = 10750 + 2150 Total = Rs.12900

Since this total amount is to be paid back in 4 years, we can find the annual installment by dividing the total amount by the number of years:

A = Total / T A = 12900 / 4 A = Rs.3225

So, the annual installment that will discharge the debt of Rs.10750 due in 4 years at the rate of 5% simple interest is Rs.3225. However, this option is not given in the options provided. Please check the problem statement again.