A man buys a scooter for rupees 22000.He pays rs4000cash and agrees to pay the balance in annual installment of rs 1000 plus 10% interest
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Given initial payment =Rs.4,000
The balance amount =22,000−4000=Rs.18000
Also given that the payment in each installment =1000+ 10% interest on the unpaid amount.
⇒ payment in 1st year =1000+10100.18000
Payment in 2nd year =1000+10100.(18000−1000)=1000+10100.(17000)
Payment in 3rd year =1000+10100.(18000−2000)=1000+10100.(16000)
an so on
Total amount paid in all the installments is
S=[1000+10100.18000]+[1000+10100.17000]+[1000+10100.16000]+..........
=[1000+1000+.......ntimes.]+10100[18000+17000+16000+.......tn]
∴ the total amount paid through installments =18000+17100=35100
∴ The tractor cost for the farmer =4000+35100=Rs.39100
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The last term in this series tn is 1000
We know that tn=a+(n−1)d
⇒1000=18000+(n−1)(−1000)
⇒−17000=(n−1)(−1000)
⇒n=18
We know that sum of n terms of an A.P. =n2(a+tn)
∴18000+17000+16000+.........1000=182[18000+1000]
=9(19000)=171000
∴ 10100.171000=17100