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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 r ...
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. Com ...
3. A washing machine is available at Rs 6400 cash or for Rs 1400 cash down payment and 5 monthly installments of Rs 1030 eac ...
4. A computer is sold by a company for Rs 19200 cash or for Rs 4800 cash down payment together with 5 equal monthly installme ...
5. A State Government announces sale of flats of Rs 555000 cash or Rs 42750 cash down payment and 3 equal Yearly installmen ...
6. 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 ...
7. A TV set is available for Rs 19650 cash payment or for Rs 3100 cash down payment and 3 equal Yearly installments. 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 ...
Problem 7 of 8
7. A TV set is available for Rs
cash payment or for Rs
cash down payment and
equal
Yearly
Half Yearly
Quarterly
installments. If the shopkeeper charges interest at the rate of
% per annum compounded as installment plan, calculate the amount of each installment.
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Installment
7. A TV set is available for Rs 19650 cash payment or for Rs 3100 cash down payment and 3 equal Yearly installments. If the shopkeeper charges interest at the rate of 10 % per annum compounded as installment plan, calculate the amount of each installment.
Cash Price = `19650`
Down Payemnt = `3100`
No of Installment = `3`
Rate = `10`
Remaining Balance = `19650 - 3100 = 16550`
Let Installment = `X`
Now present value of amount of X Rs paid at the end of 1st Year
` = X / ( 1 + 10/100 )`
` = X × 10/11`
Similarly, for `2^(nd)` Year = `X × (10/11)^2`
Similarly, for `3^(rd)` Year = `X × (10/11)^3`
`:.` The total of the present values of the `3` Installment is Rs `( X × 10/11 + X × (10/11)^2 + X × (10/11)^3 )`
and this must be equal to `16550`
`:. ( X × 10/11 + X × (10/11)^2 + X × (10/11)^3 ) = 16550`
`:. X ( 3310/1331 ) = 16550`
`X = 6655`
`:.` Installment Amount = `6655`
Total Amount Paid `= 6655 × 3 = 19965`
Interest = Total Paid - Balance Amount `= 19965 - 16550 = 3415`
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