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 = 19650Down Payemnt = 3100No of Installment = 3Rate = 10Remaining 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 × 10/11Similarly, for 2^(nd) Year = X × (10/11)^2Similarly, 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 ) = 16550X = 6655:. Installment Amount = 6655Total Amount Paid = 6655 × 3 = 19965Interest = Total Paid - Balance Amount = 19965 - 16550 = 3415 Solution provided by AtoZmath.com Any wrong solution, solution improvement, feedback then Submit Here Want to know about AtoZmath.com and me