Question

A man buys a tv by making cash down payment of rs 4945 and agrees to pay two more yearly installments

Answer 1

Answer:

RS 13824

Step-by-step explanation:

   A man buys a tv by making a cash down payment of rs 4945 and agree to pay two more yearly installments of equivalent amount at the end of first year and second year. If the rate of interest is 7 1/2% per annum, compounded annually, the cash value of the tv is nearest

 We have rate = 7 1/2  = 15/2 %

 So   1 + 15 / 2 x 100  

     43 / 40  

Principal of 1 installment will be

   4945 / 43/40  = Rs 4600

Principal of 2 installment will be

  4945 / (43/40)^2

 1.155625

So principal of TV will be Rs 4600 + 4279.06 + 4945 = Rs 13824.