Question

An auto stereo dealer sells a stereo system for Rs . 6000 down and monthly payments of Rs . 300 for the next 3 years . If the interest . mte is 1 . 25hi . per month on the unpaid balance , find a , the cost of the stereo system ; b . the total amount of interest paid . Abusiness sets up a sinking​

Answer 1

Answer:

(a) The cost of the stereo system is 13448.27 Rs.

(b) The total amount of interest paid is 3351.73 Rs.

Step-by-step explanation:

The down payment for purchasing an auto stereo is 6000 Rs.

And the total payment as installment payments with interest is = (300×3×12)= 10800 Rs.

Let us assume that the remaining amounts without interest to be paid is x Rs.

So, at 1.25% interest per month , we have to pay

$x(1+\frac{1.25}{100}*36 )=1.45x.$.

Hence, 1.45x=10800

⇒x=7448.27 Rs.

(a) The cost of the stereo system is (6000+7448.27) =13448.27 Rs. (Answer).

(b) The total amount of interest paid is (10800-7448.27)=3351.73 Rs. (Answer)