Question

Kumar bought a transistor for Rs.960. He paid $12\frac{1}{2}\text{\%}$ cash money. The rest he agreed to pay in 12 equal monthly installments How much will he pay each month?

Answer 1

Step 1: Calculate the amount paid in cash
Given:
Price of transistor = Rs 960
Amount paid in cash = $12\frac{1}{2}$% of Rs 960

=$\frac{2\times 12+1}{2}\times \frac{1}{100}\times 960$

=$\left(\frac{24+1}{2}\right)\times \frac{1}{100}\times 960$

=$\frac{25}{2\times 100}\times 960$

$=25\times \frac{480}{100}$

=$\frac{12000}{100}$

= Rs 120

Step 2: Calculate the amount of each installment

The balance amount = Rs 960 -Rs 120

= Rs 840
Number of installments = 12

So, the amount of each installement =$\frac{840}{12}$

= Rs 70

Hence, the amount of each installement is Rs 70.