anil bought a motorcycle costing 130000by making a down payment of 30000&agreeing to make equal annual payment for five years . how much would each payment if the interest on unpaid amount be 10%compounded annually
Answers
Each Payment would be Equal to Rs 26,379.75 if 100000 to be paid in equal Annual installment at 10 % per annum
Step-by-step explanation:
anil bought a motorcycle costing 130000by making a down payment of 30000
=> Remaining Payment = 130000 - 30000 = Rs 10000
Rate of interest = 10 % per annum
Time = 5 Years
Equal Annual Payment = 10000 * (10/100) * ( 1 + 10/100)⁵ / (( 1 + 10/100)⁵ - 1)
= 26,379.75
Each Payment would be Equal to Rs 26,379.75
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Answer:
32210.20 rupees
Step-by-step explanation:
This is a question on higher purchase and compound interest
Anil paid a down payment on 30000
To get the remaining amount which he was supposed to pay we subtract the deposit from the marked price
130000 - 30000 = 100000
How ever the interest for the remaining amount was compounded annually for five years
Here we use the formula for compound interest to get the accumulated amount
A = P(1 + R/100%)^n
A is the accumulated amount,P is the principal R is the rate person annum and n is the number of years
Our principal is 100000 and the rate is 10%per year for five years
A = 100000( 1 + 10/100 )^5
(1 + 0.1)^5 = 1.61051
1.61051 × 100000 = 161051
This is the amount he was to pay plus the interest
We then divide by five years because he agreed to make the payment annually
161051 ÷ 5 = 32210.20