Question

One can purchase a flat from a house building society
for 55000 cash or on the terms that he should pay
4275 as cash down payment and the rest in three
equal instalments. The society charges interest at the
rate of 16% per annum compounded half-yearly. If
the flat is purchased under instalment plan, find the
value of each instalment.​

Answer 1

Step-by-step explanation:

55000-4275 = 50725/3 = 16908.3

i = 16/200 = 0.08

C.I = 50725 {(1.08)^3-1))}

=50725 { 1.259712-1}

= 50725 {0.259712}

= 13173.8912

Answer 2

Step-by-step explanation:

Down payment =4275

Remaining loan yet to pay

55000-4275=50725

Rate=16/2=8%

100:108

25:27

3 equal installments

P: A

25:27)*27²

18225:19683. -->1st installment

P: A

25²:27²)*27

16875:19683 -->2nd installment

P:A

25³:27³

15625:19683 --> 3rd installment

So

Total principal

18225+16875+15625=50725

Which is equal to remaining loan

So

Each Installment =27³=19683