Question

Raghav buys a shop for rs.1,20,000.he pays half the balance of the amount in cash and agrees to pay the balance in 12 annual instalments of rs.5000 each. if the rate of interest is 12% and he pays with the instalment the interest due for the unpaid amount. find the total cost of the shop

Answer 1

Raghav buys a shop for real. 1200000
half amount in cash (600000)
agree to pay the rest balance amount in installment (5000)/12per annnum
The rate of interest is 12%
he pays the interst for the unpaid amount that is =60000
$600000 \times 12 \div 100 \times 12 =$