**Problem 1:** What annual installment will discharge a dept of 6450/- due in 4 years at 5% S.I?

Solution:

Method:

100 |105 |110|115

430——->6450

100——->?

**Problem 2:** What annual payment will discharge a debt of RS 944 in 4 annual equal installments at the rate of 12% on S.I?

Solution:

100| 112| 124 | 136

472——->944

100———>?

**Problem 3:** The annual payment of Rs.700 in 5 years at the rate of 10% S.I will discharge a debt of what amount?

Solution:

1st year——>700—->10%

2nd year—–>770+70

3rd year—–>840+70

4th year—–>910+70

5th year——>980

Total amount=4200