Question

Ram purchases a machine on hire purchase
system. He pays Rs.10,000 down and Rs.8,000,
Rs. 7,000 and Rs. 6,000 at the end of first, second
and third year respectively. Rate of interest @ 10%
p.a.
Calculate cash price of the machine.

Answer 1

Answer:

Step1

we use inverse proportionate method

eg. we take last year instalment 6000

6000*10/110=556

6000-556=5444is cash prize

Step-by-step explanation:

12444*10/110=