Question

Mpurchased television paying Rs. 5,000 down and promising to pay Rs. 200 every quarter for next 10
years. The seller charges interest at the rate of 12% per annum compounded quarterly. IfM missed the
first 10 payments, what must be pay when the 11th payment is due to discharge his entire loan?
(a) Rs.5873.86 (b) Rs.7108.60 (c)Rs.6399.26 (d) none of these​

Answer 1

Answer:

Step-by-step explanation:

 

I

=

P

0

r

A

=

P

0

+

I

=

P

0

+

P

0

r

=

P

0

(

1

+

r

)

I is the interest

A is the end amount: principal plus interest

P

0

is the principal (starting amount)

r is the interest rate (in decimal form. Example: 5% = 0.05)  

I

=

P

0

r

t

A

=

P

0

+

I

=

P

0

+

P

0

r

t

=

P

0

(

1

+

r

t

)

I is the interest

A is the end amount: principal plus interest

P

0

is the principal (starting amount)

r is the interest rate in decimal form

t is time

The units of measurement (years, months, etc.) for the time should match the time period for the interest rate.