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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 5 of 8
5. A State Government announces sale of flats of Rs
cash or Rs
cash down payment and
equal
Yearly
Half Yearly
Quarterly
installments. The Government also charges a nominal interest at the rate of
% per annum copuounded as installment plan in this welfare scheme. If one purchases a flat under this installment plan, calculate the value of each installment.
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Installment
5. A State Government announces sale of flats of Rs 555000 cash or Rs 42750 cash down payment and 3 equal Yearly installments. The Government also charges a nominal interest at the rate of 8 % per annum copuounded as installment plan in this welfare scheme. If one purchases a flat under this installment plan, calculate the value of each installment.
Cash Price = `555000`
Down Payemnt = `42750`
Number of Installment = `3`
Rate = `8`
Remaining Balance = `555000 - 42750 = 512250`
Let Installment = `X`
Now present value of amount of X Rs paid at the end of 1st Year
` = X / ( 1 + 8/100 )`
` = X × 25/27`
Similarly, for `2^(nd)` Year = `X × (25/27)^2`
Similarly, for `3^(rd)` Year = `X × (25/27)^3`
`:.` The total of the present values of the `3` Installment is Rs `( X × 25/27 + X × (25/27)^2 + X × (25/27)^3 )`
and this must be equal to `512250`
`:. ( X × 25/27 + X × (25/27)^2 + X × (25/27)^3 ) = 512250`
`:. X ( 50725/19683 ) = 512250`
`X = 403304670/2029`
`:.` Installment Amount = `403304670/2029`
Total Amount Paid `= 403304670/2029 × 3 = 1209914010/2029`
Interest = Total Paid - Balance Amount `= 1209914010/2029 - 512250 = 170558760/2029`
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