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The annual payment will discharge a debt...

The annual payment will discharge a debt of Rs. 5082 due in 2 yr at `10%` per annum compounded annually is

A

Rs. 1420

B

Rs. 1440

C

Rs. 1419

D

Rs. 2420

Text Solution

AI Generated Solution

The correct Answer is:
To find the annual payment that will discharge a debt of Rs. 5082 due in 2 years at an interest rate of 10% per annum compounded annually, we can use the formula for calculating the annual payment for a compound interest loan. ### Step-by-Step Solution: 1. **Identify the Variables**: - Principal (P) = Rs. 5082 - Rate of interest (r) = 10% per annum - Time (t) = 2 years 2. **Use the Formula for Annual Payment**: The formula for the annual payment (A) that will discharge a debt is given by: \[ A = \frac{P \cdot r(1 + r)^t}{(1 + r)^t - 1} \] where \( r \) is expressed as a decimal. 3. **Convert the Rate to Decimal**: Since the rate is given in percentage, we convert it to decimal: \[ r = \frac{10}{100} = 0.10 \] 4. **Substitute the Values into the Formula**: Now substitute the values into the formula: \[ A = \frac{5082 \cdot 0.10(1 + 0.10)^2}{(1 + 0.10)^2 - 1} \] 5. **Calculate \((1 + r)^t\)**: Calculate \((1 + 0.10)^2\): \[ (1 + 0.10)^2 = 1.10^2 = 1.21 \] 6. **Calculate the Numerator**: Now calculate the numerator: \[ \text{Numerator} = 5082 \cdot 0.10 \cdot 1.21 = 508.2 \cdot 1.21 = 615.902 \] 7. **Calculate the Denominator**: Calculate the denominator: \[ \text{Denominator} = 1.21 - 1 = 0.21 \] 8. **Calculate the Annual Payment**: Now, divide the numerator by the denominator: \[ A = \frac{615.902}{0.21} \approx 2932.43 \] 9. **Round to the Nearest Rupee**: The annual payment rounded to the nearest rupee is: \[ A \approx Rs. 2932 \] ### Final Answer: The annual payment that will discharge the debt of Rs. 5082 due in 2 years at 10% per annum compounded annually is approximately **Rs. 2932**.
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