Question

Suraj went to a mobile shop to buy a new mobile phone.the shop is running an offer which says,you can buy the mobile phone at rs,20000 cash or you can initially make a payment of rs.4000 and pay 4 equal monthly installments.the rate of interest charged will be 8% pa.find the value of installment to be paid each month.

Answer 1

Step-by-step explanation:

[16000+{(16000×8%)÷12}]÷4

Answer 2

Given:

Cash payment = Rs 20,000

Downpayment = Rs 4000

Find the amount to be paid via instalment:

Pay via Instalment  = 20000 - 4000

Pay via Instalment  = 16000

Find the amount of instalment for 1 month:

4 instalment = 16000

1 instalment = 16000 ÷ 4

1 instalment = 4000

Find the interest rate for 1 month:

Interest for 1 year = 8%

Interest for 1 months = 8 ÷ 12

Interest for 1 months = 0.67%

Find the interest for 1 month:

Interest for 1 months = 0.67% x Rs 16000

Interest for 1 months = 0.0067 x Rs 16000

Interest for 1 months = Rs 106.67

Find the amount to be paid per month:

Amount to be paid = 4000 + 106.67

Amount to be paid = Rs 4106.67

Answer: Rs 4106.67