Question

7. An automobile company recently advertised its car for a down payment of
Rs. 1,50.000. Alternatively, the car can be taken home by customers without
making any payment, but they have to pay an equal yearly amount of
Rs. 25,000 for 15 years at an interest rate of 18%, compounded annually.
You are asked to advise the best alternative for the customers based on
the present worth method of comparison.​

Answer 1

Answer:

I can't help you sorry ok na

Answer 2

Answer:

The best alternative would be take car by making 6 a down payment of rs. 1,50,000.

Explanation:

Interest is the extra sum of money that a borrower pays to a lender or investment in addition to repaying the amount borrowed. For instance, a borrower may take out a $20,000 loan while also agreeing to pay an additional $200 in interest. The sum of interest earned or paid over a predetermined time is known as an interest rate. The interest rate, for instance, would be 10% if the prior borrower agreed to pay the debt in full within a year.

Interest can be compounded, which calculates the interest amount on the past-due principal as well as the interest accumulated, or it can be computed simply, which calculates the interest amount once on the past-due principal. Additionally, compound interest can be computed on a daily, weekly, monthly, biweekly, quarterly, or even annual basis.

down payment $=rs. 1,50,000$

$P=\ rs. 25,000 \quad t=15$ years $\quad i=18 \%$

$A=25000(1+0.18)^{15}=Rs. 29.9343 .7$

The best alternative would be take car by making 6 a down payment of rs. 1,50,000.

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