Question

A housing company has quoted r.s. 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 r.s. 4,80,000 and pay the balance
amount after 5 years with an interest at the rate
of 19/2%per year. Option B: Make an initial
payment of r.s. 4,80,000 and pay the balance in
60 monthly instalments of r.s. 31,200 each.
Calculate the total amount paid in each plan.
Which option is cheaper, and by how much?​

Answer 1

Answer:

Option B is cheaper by 1 ,20 ,000 approx.