Home

Solve any problem
(step by step solutions)
Input table (Matrix, Statistics)
Mode :
SolutionHelp
Solution
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.

Solution:
Your problem `->` 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 ( 400510/161051 ) = 16550`

`X = 2665394050/400510`

`:.` Installment Amount = `2665394050/400510`

Total Amount Paid `= 2665394050/400510 × 3 = 7996182150/400510`

Interest = Total Paid - Balance Amount `= 7996182150/400510 - 16550 = 1367741650/400510`






Solution provided by AtoZmath.com
Any wrong solution, solution improvement, feedback then Submit Here
Want to know about AtoZmath.com and me
  
 

Share with your friends, if solutions are helpful to you.
 
Copyright © 2018. All rights reserved. Terms, Privacy