An auto stereo dealer sells system for Rs 6000 down and monthly payment of rupees 300 for next 3 years if the interest rate is 1.25 % per month on unpaid balance then find the cost of stereo system and the total amount of interest paid
Answers
Answer:
2700 RS will be the interest rate and total amount to be paid is 8700
Step-by-step explanation:
The formula we'll use for this is the simple interest formula, or: P X RX T
Where:
P is the principal amount, 6000
r is the interest rate, 1.25% per month
t is the time involved, 3....year(s) time periods.
Since your interest rate is "per month" and you gave your time interval in "year(s)" we need to convert your time interval into "month" as well.
simply multiply no. of years with 12 ( no. of months)
So, t is 36....month time periods.
To find the simple interest, we multiply 6000 × 0.0125 × 36 to get that:
The interest is: 2700
Usually now, the interest is added onto the principal to figure some new amount after 3 years,
or 6000.00 + 2700.00 = 8700
which is the answer. 8700 RS