Question

anil brought a motor cycle costing 130000 by making q down payment of rs 30000 and agreeing to makde equal annual payment for 5 years how much would be each payment if the i trest on unpaid amount be 10% compounded annually​

Answer 1

Answer:

$ 26379.75

Step-by-step explanation:

Given,

The original amount of the motor cycle = rs 130000,

Down payment = 30000,

So, the present value of the loan, PV = 130000 - 30000 = 100000,

Now, annual rate, r = 10% = 0.1,

Number of periods = 5 years,

So, the annual payment would be,

$P=\frac{PV(r)}{1-(1+r)^{-n}}$

$=\frac{100000(0.1)}{1-(1+0.1)^{-5}}$

$\approx \ 26379.75$