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 A computer is sold by a company for Rs 19200 cash or for Rs 4800 cash down payment together with 5 equal monthly installments. If the rate of interest charged by the company is 12 % per annum, find each installment. [ Calculator, Method and examples ]Solution:Your problem -> A computer is sold by a company for Rs 19200 cash or for Rs 4800 cash down payment together with 5 equal monthly installments. If the rate of interest charged by the company is 12 % per annum, find each installment.Cash Price = 19200Down Payemnt = 4800No of Installment = 5Rate = 12Remaining Balance = 19200 - 4800 = 14400At the end of 5 months, Amounts to = 14400 + (14400 × 5 × 12) /(12 × 100) = 14400 + 720 = 15120 ->(1) Let Installment = X 1^(st) Installment = X + (12 × X × 4) / (12 × 100)2^(nd) Installment = X + (12 × X × 3) / (12 × 100)3^(rd) Installment = X + (12 × X × 2) / (12 × 100)4^(th) Installment = X + (12 × X × 1) / (12 × 100)Total Installment = X + ( X + (12 × X × 4) / (12 × 100) ) + ( X + (12 × X × 3) / (12 × 100) ) + ( X + (12 × X × 2) / (12 × 100) ) + ( X + (12 × X × 1) / (12 × 100) )Total Installment = 5 X + (12 × X ×(4 + 3 + 2 + 1))/ (12 × 100)Total Installment = 5 X + 1/10 × XTotal Installment = 51/10 X ->(2)From (1) and (2) 51/10 X = 15120X = (15120) / (51/10)X = 50400/17:. Installment Amount = 50400/172^(nd) MethodCash Price = 19200Down Payemnt = 4800No of Installment = 5Rate = 12Remaining Balance = 19200 - 4800 = 14400Let Installment = X:. Interest Paid = 5 X - 14400 ->(1)Principal for 1^(st) month = 14400Principal for 2^(nd) month = 14400 - 1 XPrincipal for 3^(rd) month = 14400 - 2 XPrincipal for 4^(th) month = 14400 - 3 XPrincipal for 5^(th) month = 14400 - 4 XTotal = 72000 - 10 X:. Interest = ((72000 - 10 X) × 12 × 1) / (100 × 12) ->(2):. From (1) and (2)((72000 - 10 X) × 12 × 1) / (100 × 12) = 5 X - 14400(72000 - 10 X) = 500 X - 1440000500 X + 10 X = 72000 + 1440000510 X = 1512000:. X = 50400/17

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