DRDO Multi tasking staff Model paper 8

Let Mohan paid Rs. P every year
∴ Interest for 1 year = P × 1 × 4/100 = P × 4/100
∴ Amount due in 1 year = P + 4P/100 = Rs. 104P/100
Similarly
Amount due In 2 years = P + 8P/100 = Rs. 108P/100
Amount due in 3 years = P + 12P/100 = Rs. 112P/100
Now since the last payment of Rs. P will be paid with no interest
∴ Amount due in 4th year = Rs. P
∴ According to the question
104P/100 + 108P/100 + 112P/100 + P = 1696
P × (104 + 108 + 112 + 100)/100 = 1696
∴ P = 1696 × 100/424
∴ P = Rs. 400