A person buys a washing machine on the condition
that he shall pay a sum of INR5880 as cash down
payment and the same sum at the end of the first
year and the two years. What is the total interest
paid by him under this scheme, if the rate of
interest is 5%, compounded yearly?
Answers
Answer:
ghost
Step-by-step explanation:
XYZ...
don't know what but
2/5*5880
then multiply by again 5
then answer write
finish
The total interest paid by him under this scheme is 827 Rs.
A person buys a washing machine on the condition that he shall pay a sum of 5880Rs. as cash down payment and the same sum at the end of the first year and the two years.
We have to find the total interest paid by him under this scheme, if the rate of interest is 5% compounded yearly.
Let the cost of washing machine is x.
Amount becomes of washing machine after two years.
A = x(1 + 5/100)² [ using formula A = P(1 + r/100)ⁿ ]
= x(21/20)²
= 441x/400
Money paid by person in two installments with interest = 5880 + 5880(1 + 5/100)
∴ 441x/400 = 5880 + 5880(21/20)
⇒ 441x/400 = 5880 + 6174
⇒ x = 10933.33
Total interest paid by him = sum of all installments - cost of washing machine
= 5880 × 2 - 10933.33
= 826.67 ≈ 827
Therefore the total interest paid by him under this scheme is 827 Rs.
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