How much should be the annual installment to completely pay off a debt of Rs. 1078 in 6 years at 9% per annum rate of interest?
A)rs.146.35
B)rs.156.25
C)rs.126.55
D)rs.118.35

Question

Quizplus · Accepted Answer

The annual installment can be calculated using the formula for the present value of an annuity. The formula is: Installment = Debt / [(1 - (1 + r)^-n) / r], where r is the annual interest rate and n is the number of years. Plugging in the values: Installment = 1078 / [(1 - (1 + 0.09)^-6) / 0.09] = Rs. 146.35.

How Much Should Be the Annual Installment to Completely Pay