Question

Rakesh paid Rs. $900$ as monthly instalment for some months on buying a scooter from Tata company, costing Rs. $16000$, after paying a down payment of Rs. $2000$. If Tata company charged SI at $10\%$ p.a. find the number of instalments.

Answer 1

Let n be the number of months of repayment at Rs. $900$ per month
Cost of scooter $=$ Rs. $16000$
Down payment $=$ Rs. $2000$
Loan amount $-$ Rs. $14000$
SI at $10\%$ p.a. on Rs. $14000$ for $n$ months
$=$ $14000\times \frac{10}{100}\times \frac{n}{12}=116.66n$
Total amount paid in n months $=900n$
Thus $900n=$ Rs. $14000+116.66n$
$\Rightarrow 783.34n=14000$
$\Rightarrow n=17.874$
The number of instalments is approximately $18$.