?
A car with a price of Rs. 6,50,000 is bought by making some down payment. On the balance, a simple interest of 10% is charged in lump sum and the money is to be paid in 20 equal annual instalments of Rs. 25,000. How much is the down payment?
Answer & Solution
Correct Answer:
Option
B
Cash payment = 650000
Each installment = 25000
Total installment = 20
Sum = 25000 × 20 = 500000
Rate = 10% = $$\frac{1}{{10}}$$
⇒ Down payment = 650000 - 454545.45 = 195454.55 ≈ 195455
Each installment = 25000
Total installment = 20
Sum = 25000 × 20 = 500000
Rate = 10% = $$\frac{1}{{10}}$$
⇒ Down payment = 650000 - 454545.45 = 195454.55 ≈ 195455
Join the Discussion
Login to post a comment or share your explanation.
Login