Question

Hari buys a scooter for Rs. 22000. He pays Rs. 4000 Cash and agrees to pay the balance in annual

Installments of Rs. 1000 plus 10% interest on the unpaid amount. What will the scooter cost him?

• A. 39150
• B. 39100
• C. 40000
• D. 41500

Answer 1

The correct option is B

39100

First Installement = Rs 1000+Rs18000x10/100=Rs.2800

Second Installment = Rs. 1000+Rs. 17000x10/100=Rs. 2700

Third Installement = Rs. 1000 + Rs. 16000 x 10/100= Rs. 2600

Now , balance to be paid = Rs. (22000-4000)= Rs. 18000

It is to be paid in 18 annual installments.

So, total cost of the scooter

=Rs. {2800+2700+26000+...+upto 18 terms}+Rs. 4000

=18/2 [2x2800+17x(-100)]+Rs. 4000

=Rs. 35100+Rs. 4000

=Rs. 39100