Vikram borrowed rupees 6450 at 5% simple interest repayable in 4 equal installments. what will be the annual installment payable by him?
Choose the correct option: A) 1710 B) 1810 C) 1910 D) 1860 E) 1850
Let the annual instalment be Rs. P.   Amount of ₹ 100 after 4 yr = 100 + (100 x 5 x 4)/100 = ₹ 120   ∴ Present Value (PV) of ₹ 120 due after 4 yr = ₹ 100   Present Value (PV) of ₹ due after 4 yr = 100P/120 = 5P/6   Similary, PV of ₹ P due after 3 yr = 20P/23   PV of ₹ P due after 2 yr = 10P/11   PV of ₹ P due after 1 yr = 20P/21   ∴ 5P/6 + 20P/23 + 10P/11 + 20P/11 = 6450   ⇒ P = ₹ 1810   ANSWER:1810
<result>B</result>
Vikram borrowed rupees 6450 at 5% simple interest repayable in 4 equal installments. what will be the annual installment payable by him?