Equal annual instalment

buvanesh wrote:what equal annual instalment will discharge a debt of Rs.2070 due in 5 years at 10% simple interest?

1.Rs.345
2.Rs.355
3.Rs.350
4.Rs.360

Please help me with this sum...

This is not a GMAT question, first of all.

If each equal annual instalment is Rs a, then

Amount of Rs a in 4 years + Amount of Rs a in 3 years + Amount of Rs a in 2 years + Amount of Rs a in 1 year + Rs a = Rs 2070

Or, [a + (a × 10 × 4/100)] + [a + (a × 10 × 3/100)] + [a + (a × 10 × 2/100)] + [a + (a × 10 × 1/100)] + a = 2070

Or, 140 a + 130 a + 120 a + 110 a + 100 a = 2070 × 100

Or, 600 a = 2070 × 100

Or, a = 2070 × 100/600 = [spoiler]Rs 345

Choose (1)[/spoiler]

sanju09 wrote:

buvanesh wrote:what equal annual instalment will discharge a debt of Rs.2070 due in 5 years at 10% simple interest?

1.Rs.345
2.Rs.355
3.Rs.350
4.Rs.360

Please help me with this sum...

This is not a GMAT question, first of all.

If each equal annual instalment is Rs a, then

Amount of Rs a in 4 years + Amount of Rs a in 3 years + Amount of Rs a in 2 years + Amount of Rs a in 1 year + Rs a = Rs 2070

Or, [a + (a × 10 × 4/100)] + [a + (a × 10 × 3/100)] + [a + (a × 10 × 2/100)] + [a + (a × 10 × 1/100)] + a = 2070

Or, 140 a + 130 a + 120 a + 110 a + 100 a = 2070 × 100

Or, 600 a = 2070 × 100

Or, a = 2070 × 100/600 = [spoiler]Rs 345

Choose (1)[/spoiler]

why this concept cannot be checked on gmat, i dint get a word here in the explanation though; pl help me...experts

Dude..

As Sanju pointed out this is surely not a GMAT question.

Interest problems are tested in GMAT.But this problem question is awkward.Moreover only 4 options are there.

GMAT questions are clear and ll be expressed clearly.Instead of solving these problems try the problems from the authentic source.

selango wrote:Dude..

As Sanju pointed out this is surely not a GMAT question.

Interest problems are tested in GMAT.But this problem question is awkward.Moreover only 4 options are there.

GMAT questions are clear and ll be expressed clearly.Instead of solving these problems try the problems from the authentic source.

thanks dude, on that premise it's ok, but can u pl explain what he did with it

sanju09 wrote:

buvanesh wrote:what equal annual instalment will discharge a debt of Rs.2070 due in 5 years at 10% simple interest?

1.Rs.345
2.Rs.355
3.Rs.350
4.Rs.360

Please help me with this sum...

This is not a GMAT question, first of all.

If each equal annual instalment is Rs a, then

Amount of Rs a in 4 years + Amount of Rs a in 3 years + Amount of Rs a in 2 years + Amount of Rs a in 1 year + Rs a = Rs 2070

Or, [a + (a × 10 × 4/100)] + [a + (a × 10 × 3/100)] + [a + (a × 10 × 2/100)] + [a + (a × 10 × 1/100)] + a = 2070

Or, 140 a + 130 a + 120 a + 110 a + 100 a = 2070 × 100

Or, 600 a = 2070 × 100

Or, a = 2070 × 100/600 = [spoiler]Rs 345

Choose (1)[/spoiler]

thanks dude.... as you said this is not a gmat question. it is from a cat material.. but i think its a good source for basic concepts... whether its for cat or gmat....