Amit buys A shop for 120000 he pays half of the amount in cash and agrees to pay the balance in 12 annual installments of rupees 5000 each if the rate of interest is 12% and he pays with the installment the interest due on the unpaid amount find the total cost of the shop
Answers
Answer:
1,66,800
Step-by-step explanation:Given Amit buys A shop for 120000 he pays half of the amount in cash and agrees to pay the balance in 12 annual installments of rupees 5000 each if the rate of interest is 12% and he pays with the installment the interest due on the unpaid amount
So first given 1/2 of 1,20,000
So Amit has paid Rs 60,000 and remaining balance he will pay in installments.
So for the first installment it will be 5000 + 12/100 x 60000 (rate of interest is 12%)
5000 + 7200 = Rs 12,200
Similarly for second installment we need to subtract 5000 from 60,000
So 5000 + 12/100 x 55000
5000 + 6600 = Rs 11,600
12,200, 11,600,.........................................
This will keep on for 12 installments . By taking A.P we can find the remaining amount.
So a = 12,200, d= 11,600 - 12,200 = - 600, n = 12
Sₙ = [ n/2(2 a + (n - 1) d]
60,000 + [12/2 (2(12,200 + (12 - 1)(-600)]
60,000 + 6(24,400 - 6600)
60,000 + 1,06,800
1,66,800
So the total cost of the shop is 1,66,800
Answer:
Step-by-step explanation:
