Question

A farmer buys a tractor for Rs. 1,20,000. He pays Rs 50,000 cash and agrees to pay the balance amount in annual installments of Rs 10,000 plus 15% interest on the unpaid amount. How much will the tractor actually cost him ? PLEASEEEEEEEEEEEEEEEE

Answer 1

Step-by-step explanation:

First of all, unpaid amount=70,000

If he pays 10,000 in 1 year, he will pay 70,000 in 7 yrs

Now, 15% interest on it=10500

Total amount he pays annually =10,000 + 10,500

Total amount for 1 year=20,500

Now, for 7 year = 20500x7

=143,500

Remember, he paid 50,000 already

So total money he paid in 7 yrs=50,000+143,500=193,500

But the actual price of tractor was 1,20,000

Omg!, he paid 193,500-120,000=73500 extra

Tractor actually cost him 193,500