Name: Purchase and Instalment System
Uploaded: 2019-07-19
Duration: 19 min 32 s
Description: In this video lecture, you learn the basics of the hire-purchase and instalment system, with their similarities and differences. View this video for details.

Question

The cash price of a fan is

₹ 1, 940

. In the instalment scheme if it is available for a cash down payment of

₹ 620

and two equal monthly instalments. If the rate of annual rate of interest charged is under the scheme is

16 %

then find the amount of each instalment.

Accepted Answer

Given: Cash price $= ₹ 1940$ , down payment $= ₹ 620$ , number of instalment $= 2$ and rate $= 16 %$ .

Now, remaining balance $= ₹ 1940 - ₹ 620 = ₹ 1320$

At the end of two months, amount to $= 1320 + \frac{1320 \times 2 \times 16}{12 \times 100} = 1320 + \frac{176}{5}$

$\Rightarrow \frac{6776}{5} . . . (1)$

Let the instalment $= ₹ x$

First instalment $= x + \frac{16 \times x \times 1}{12 \times 100}$

Total instalment $= x + (x + \frac{16 \times x \times 1}{12 \times 100})$

Total instalment $= 2 x + (\frac{16 \times x \times 1}{12 \times 100})$

Total instalment $= 2 x + \frac{x}{75}$

$\Rightarrow \frac{151 x}{75} . . . (2)$

From equation $(1)$ and $(2)$ , we get,

$\frac{151 x}{75} = \frac{6776}{5}$

$x = \frac{6776 \times 75}{151 \times 5} = \frac{101640}{151}$

$x = ₹ 673.11$

Hence, the value of each instalment is equal to $₹ 673.11$ .

The cash price of a fan is $₹ 1, 940$ . In the instalment scheme if it is available for a cash down payment of $₹ 620$ and two equal monthly instalments. If the rate of annual rate of interest charged is under the scheme is $16 %$ then find the amount of each instalment.

Important Questions on Comparing Quantities

Learn and Prepare for any exam you want !

The cash price of a fan is ₹1,940. In the instalment scheme if it is available for a cash down payment of ₹620 and two equal monthly instalments. If the rate of annual rate of interest charged is under the scheme is 16% then find the amount of each instalment.

Important Questions on Comparing Quantities

Learn and Prepare for any exam you want !

The cash price of a fan is $₹ 1, 940$ . In the instalment scheme if it is available for a cash down payment of $₹ 620$ and two equal monthly instalments. If the rate of annual rate of interest charged is under the scheme is $16 %$ then find the amount of each instalment.