Question

a person buys a washing machine on a condition that he shall pay a sum of 5880 as cash down payment and the same sum at the end of first year and two years what is the total interest paid by him if the interest is 5% compounded yearly​

Answer 1

Answer:

Let say Cost of washing Machine = 100C rs

Paid as down payment = 5880

Remaining Amount = 100C - 5880

Interest in 1st Year = (100C - 5880) * 5 * 1 /100 = 5C - 294

Amount left to be paid = 100C - 5880 - 5880 + 5C - 294

= 105C - 12054

Interest in 2nd year =( 105C - 12054) * 5 * 1 /100

Amount to be Paid

105C - 12054 + ( 105C - 12054) * 5 * 1 /100 = 5880

=> 105C - 12054 = 5600

=> C = 168.13

100C = 16813

Interest Paid = 3 * 5880 - 16813 = 826.67

= 827

the total interest(in INR) paid by him under this scheme, = 827

Step-by-step explanation:

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