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Installment
1. A briefcase is available for Rs 800 cash or for Rs 500 cash down payment and Rs 320 to be paid after 6 months. Find the rate ...
2. A bicycle is sold for Rs 1800 cash or for Rs 600 cash down payment followed by 2 monthly installmnets of Rs 610 each. Compute ...
3. A washing machine is available at Rs 6400 cash or for Rs 1400 cash down payment and 5 monthly installments of Rs 1030 each. C ...
4. A computer is sold by a company for Rs 19200 cash or for Rs 4800 cash down payment together with 5 equal monthly installments ...
5. A State Government announces sale of flats of Rs 555000 cash or Rs 42750 cash down payment and 3 equal Yearly installments. T ...
6. A TV set is available for Rs 19650 cash payment or for Rs 3100 cash down payment and 3 equal Yearly installments. If the shop ...
7. A man borrows money from a finance company and has to pay it back in 2 equal Half Yearly installments of Rs 4945 each. If the ...
8. Ram borrowed a sum of money and returned it in 3 equal Quarterly installments of Rs 17576 each. Find the sum borrowed, if the ...
Problem 7 of 8
7. A man borrows money from a finance company and has to pay it back in
equal
Yearly
Half Yearly
Quarterly
installments of Rs
each. If the interest is charged by the finance company at the rate of
% per annum compounded as installment plan, find the principal and the total interest paid.
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Installment
7. A man borrows money from a finance company and has to pay it back in 2 equal Half Yearly installments of Rs 4945 each. If the interest is charged by the finance company at the rate of 15 % per annum compounded as installment plan, find the principal and the total interest paid.
InstallAmt = `4945`
Number of Installment = `2`
Rate = `7.5`
The amount of `4945` Rs paid at the end of 1st Year
has its principal equal to
` = 4945 / ( 1 + 7.5 / 100 )`
` = 4945 / ( 107.5 / 100 )`
` = 4945 × 0.9302`
Similarly, for `2^(nd)` Year = `4945 × (0.9302)^2`
`:.` The total of the present values of the `2` Installment is Rs `( 4945 × 0.9302 + 4945 × (0.9302)^2 )`
` = 8879.0698`
Total Amount Paid `= 4945 × 2 = 9890`
Interest = Total Paid - Balance Amount `= 9890 - 8879.0698 = 1010.9302`
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