Question

On the basis of the following : The purchase price of a motor car purchased by Car Mart Co. on hire purchase from Auto rider Company is ₹ 37,250. it is available on hire purchase on the following items: (a) Initial amount payable is ₹ 10,000. (b) total amount of interest @ 5% p.a. comes to ₹ 2,750. (c) balance amount is payable in three installments of ₹ 10,000 each.The cash price is​

Answer 1

Given:

We have given the purchase price  a motor car purchased  Car Mart Co on hire purchase by Auto rider Company is  37,250.

To Find:

We need to find the cash price of car?

Step-by-step explanation:

• Since in the given information we have that car is purchased at the rate of 37,250.

• We also have the initial amount that has been paid to the owner is 10,000

• With interest has also to be given which is pf 2,750
• we have 3  of 10,000 each thus total will be 30,000.
• Thus total cash amount will be given by
• 30,000+10,000+2750=Rs.42750.
• Hence total cash is Rs.42750.