Question

Ankush wanted to purchase a LCD (TV) and went to a Showroom. He found that LCD with marked price of Rs. 30,000/-, is available with Cash payment alongwith 5% discount or for Rs. 5000 as cash down payment followed by 3 equal monthly installments with interest at the rate of 10% per month. Find the difference in amount payable under the two schemes.

Answer 1

Scheme one

30,000*95/100 (5% discount)
=28,500

scheme two-

down payment =5,000

total sum left=30,000-5,000=25,000

Simple interest(S.I)=(Principle Amount*rate*time)/100

SI=(25,000*10*3)/100
    =2,500*3
    =7,500

Therefore total amount that would be paid =25,000+7,500+5,000
                                                                    =38,000

Therefore difference is 38,000-28,500=9,500