Compound Interest Practice Test 3

Question : 39 of 40

Marks: +1, -0

A TV set is available for Rs 19,650 cash payment for Rs 3,150 cash down payment in three equal annual installments. If the interest is charged at the rate of 10% per annum compounded annually, the amount of each installment is:

Rs 6,555
Rs 6,612
Rs 6,655
Rs 6,665

Validate

Solution:

P = 19,650 - 3,150 = Rs 16,500

A=16,500(1+10/100)

=16,500×11/10×11/10×11/10

= Rs 21,961.5
Annual Installment

={100A}/{100t+({rt(t-1)}/2)}

={100×21,961.55}/{100×3+({3×1(3-1)}/2)}

={100×21,961.5}/{300+30}=6655

Go to Question:

Prev Question

Next Question