calculate the amount of interest included in each installment : cash price ₹50'00; Down payment ₹15'000; 3 annual installment of ₹20'000, ₹15'000 and ₹ 10'000 respectively payable at the end of each year.
Answers
Answer:
The amount of interest will be 1900
Explanation:
From the above question, They have given:
cash price ₹50'00
Down payment ₹15'000
3 annual installment of ₹20'000, ₹15'000 and ₹ 10'000
Let the cash prize be x
Cash down payment = 5,000
Balance amount to be paid = x – 5000
1st installment paid at the end of 1st year = 15,000 +5000
Principal of 1st installment P1 = 810 / (115 / 100) = 704.37
2nd installment paid at the end of 2nd year = 15000
Principal of 2nd installment P2 = 520 / (115 / 100)2 = 393.19
3rd installment paid at the end of 3rd year = 10000
Principal of 3rd installment P3 = 460 / (115 / 100)3 = 302.45
Total principal = P1 + P2 + P3
P1 + P2 + P3 = 1400
Now, x – 500 = 1400
x = 1900
Hence, The amount of interest will be 1900.
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