Question

Is sold by an automobile agency for rupees 18200 cash or 3800 cash down payment together with 5 equal monthly installments @ rate interest charged by the companies 12% per annum for then find its installing?

Answer 1

Answer :

The installment amount is Rs 2964.7  

Step-by-step explanation:

Given as :

The price of automobile = Rs 18200

Total cash amount = Rs 18200

Number of installments = 5

Or,

Cash down payment = Rs 3800

So, remaining amount = Rs 18200 - Rs 3800

i.e Remaining amount = Rs 14,400

At the end of 5 months, Amounts  = Rs 14400 + $\dfrac{14400\times 12\times 5}{12\times 100}$

i.e  At the end of 5 months, Amounts  = rs 14400 + rs 720

Or, At the end of 5 months, Amounts = rs 15120              ............1

Again

let the installment amount = Rs x

1st Installment = x + $\dfrac{x\times 12\times 4}{12\times 100}$

2nd installment = x + $\dfrac{x\times 12\times 3}{12\times 100}$

3rd installment = x + $\dfrac{x\times 12\times 2}{12\times 100}$

4th installment = x + $\dfrac{x\times 12\times 1}{12\times 100}$

∴  Total installment = x + x + $\dfrac{x\times 12\times 4}{12\times 100}$  + x + $\dfrac{x\times 12\times 3}{12\times 100}$ +  x + $\dfrac{x\times 12\times 2}{12\times 100}$ + x + $\dfrac{x\times 12\times 1}{12\times 100}$

or, Total installment = 5 x + $\dfrac{120x}{1200}$

or , Total installment = 5 x + $\dfrac{x}{10}$

Or, Total installment = $\dfrac{51x}{10}$             .....2

From eq 1 and eq 2

$\dfrac{51x}{10}$  = 15120

∴   x = Rs 2964.7

Hence, The installment amount is Rs 2964.7  Answer