a good natured shopkeeper offers a coloured tv set worth 45000 at 5000 cash down payment and the rest in 10 equal installments.if the interest at 5percent is charged on the outstanding balance and the entire amount of interest so earned is given away to an orphanage to provide medical facilities find the interst.what values does the an gesture reflect
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From the question the down payment or rather the deposit is 5000 whereas the price is 45000.
The remaining balance to be paid in 10 monthly installment is 40000 on which an interest rate of 5% is charged.
The accumulation factor is (1.05)^n and n is in years.
The accumulated amount is :40000 × (1.05)^(10/12)=41659.85
Interest=41659.85-40000=1659.85
The remaining balance to be paid in 10 monthly installment is 40000 on which an interest rate of 5% is charged.
The accumulation factor is (1.05)^n and n is in years.
The accumulated amount is :40000 × (1.05)^(10/12)=41659.85
Interest=41659.85-40000=1659.85
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