Question

Mr. Sudhir purchased a machine at a
cash price of Rs. 1,20,000 on 1st
January 2016. On the same day, he
paid Rs. 20,000 as down payment.
The balance amount was payable
alongwith interest @ 10% p.a. in 4
annual installments starting from 31st
December, 2016. The installments
were as follows: 31/12/2016 - Rs.
35,000, 31/12/17 - Rs. 32,500, 31/12/18
- Rs. 30,000 & 31/12/19 - Rs. 27,500.
Determine the interest component in
installment dated 31/12/2018.*
Rs. 10,000
Rs. 7,500
Rs. 5,000
Rs. 2,500​

Answer 1

Answer:

2,500

Explanation:

4th instalment was 27,500 which includes 10% interest.

if we do like this 27,500 × 10/100+10 it will be 25,000