Question

X purchased machinery under hire purchase

agreement from Y. The cash price of the

machinery was Rs. 15,500. The payment was

to be made as follows:

Rs.

On signing the agreement 3,000

First year end 5,000

Second year end 5,000

Third year end 5,000

Calculate interest for each year.​

Answer 1

Answer:

X purchased machinery under hire purchase

agreement from Y. The cash price of the

machinery was Rs. 15,500. The payment was

to be made as follows:

Rs.

On signing the agreement 3,000

First year end 5,000

Second year end 5,000

Third year end 5,000

Calculate interest for each