Question

A cycle is offered for Rs.12,000 cash or Rs.6,000 down payment followed by 4 equal monthly instalments. If the rate of interest charged by the dealer is 10% per annum, simple interest find the amount of each instalment.

Answer 1

Answer:

Step-by-step explanation:

Selling price of Cycle = Rs. 12000;

Rest of amount after given the down payment of Rs. 6000 is;

Rest amount = 12000-6000 = 6000;

Now calculating the simple interest annually on Rs. 6000 at the rate of 10%;

Simple interest = PRT/100;

=  6000*10*1/100 = 600

Simple interest is Rs. 600

Total due amount is 6000+600 = 6600; which have to pay by 4 equally installments:

Amount of each installment is = 6600/4 = Rs. 1650