Question

14) A housing company has quoted 19,20,000
for a new flat in one of their buildings,
The
company that sells the house offers two
kinds of instalment plans. Option A: Make an
initial payment of 34,80,000 and pay the balance
amount after 5 years with an interest at the rate
1
of 9 -% per year. Option B: Make an initial
2.
payment of 4,80,000 and pay the balance in
60 monthly instalments of 31,200 each.
Calculate the total amount paid in each plan.
Which option is cheaper
, and by how much?​

Answer 1

Step-by-step explanation:

option A : 1920000-480000 = 1440000

Interest = 1440000* 19/2 * 5/100

= 6,84000

Total = 480000+1440000+684000

= 2604000

option B : 480000+(60*31200)

= 2352000

So, option B is cheaper by 252000