What annual installment will discharge a debt of Rs 2,360 due in four years at 12% p.a. simple interest?
Choose the most appropriate option
A) 400  B) 500  C) 300  D) 600  E) None
Explanation:   Installments paid at the end of 1st, 2nd, 3rd and 4th years earn a simple interest at 12% p.a. for 3, 2, 1 and 0 years respectively.   Hence the respective installments amount to, (100 + 3 x 12), (100 + 2 x 12), (100 + 1 x 12) and 100, when annual installment is Rs 100.   Hence amount paid is Rs. 136 + Rs 124 + Rs 112 + Rs 100 i.e., Rs 472, when the annual installment is Rs.100   For an amount of Rs 2,360, annual installment = 2,360×100/472=Rs500   Answer 500
<result>B</result>
What annual installment will discharge a debt of Rs 2,360 due in four years at 12% p.a. simple interest?