A tv can be bought for rs. 20000 cash or by paying in four equal monthly installments with an initial down payment of rs. 4000. if the rate of interest for this facility is 8% per annum, then what would be the installment charged for each month?
Answers
Given : A tv can be bought for rs. 20000 cash or by paying in four equal monthly installments with an initial down payment of rs. 4000
To find : installment charged for each month if interest for this facility is 8% per annum
Solution:
Using EMI formula
Equated Monthly Installments = [P x (R/100) x (1+(R/100))ⁿ]/[(1+(R/100)ⁿ-1]
Amount = 20000 Rs
Down Payment = Rs 4000
=> P = 20000 - 4000 = Rs 16000
R = Rate of Monthly Interest = (8/12) = 2/3 %
n = Number of Months = 4
EMI = 16000 * (2/300) * (1 + 2/300)⁴ / ( (1 + 2/300)⁴ - 1)
= (320/3) ( 302/300)⁴ /(( 302/300)⁴ - 1)
= 4067
installment charged for each month = 4067
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Answer:
Step-by-step explanation: