Question

The cash price of a television is rs. 4022. a customer paid rs. 1500 in cash and promised to pay the remaining money in 3 monthly equal instalments at the rate of 5% per annum compound interest. what is the value of each instalment?

Answer 1

Thank you for asking this question.
I will help you in finding the answer.
Actually for these kind of questions there is a formula  or you can say the equation that  is helpful for solving the questions .(
the standard equation is following:
x= (y/(1+(r/100))) + (y/(1+(r/100))^2) + (y/(1+(r/100))^3).............upto N term
Here X is the amount you have to pay and N equal the number of installments.

Here X =2522 ( 4022 - 1500 = 2522)
Now by putting values in the formula we get 
2522 =(y/(1+(5/100))) + (y/(1+(5/100))^2 + (y/(1+(5/100))^3)
By solving it we get Y which is the installment per month 
y= 926.10.
Hope this will help you.

Answer 2

Solution :-

Cash price of the television = Rs. 4022

Payment made by the customer n cash in the beginning = Rs. 1500

Remaining amount to be paid = 4022 - 1500 = Rs. 2522

Let each installment be of Rs. x.

Then the principals for the amount of Rs. x for the 1st year. 2nd year and the third year will be as follows.

⇒ x (20/21) + x(20/21)² + x(20/21)³ = 2522

⇒ or x(20/21) [1/1 + 20/21 + (20/21)²] = 2522

⇒ x × 20/21 × 1261/441 = 2522

⇒ x = (2522× 21 × 441)/(20 × 1261)

⇒  Rs. 926.10

Answer