Question

Shamshad Ali buys a scooter for Rs. 22000. He pays Rs. 4000 cash and agrees to pay the balance in annual instalments of Rs. 10000 plus $10\%$ interest on the unpaid amount. How much the scooter will cost him.

Answer 1

Total cost of Scooter

$=Rs.4000+\left[\right\{\{Rs.1000+\text{S.I. on}Rs.18000\text{for 1 year}\}+\{Rs.1000+\text{S.I on}Rs.17000\text{for 1 year}\}+\dots \dots \text{18 times}\left\}\right]$

= (4000 + 18000) + S.I. for 1 year on (18000 + 17000 + ... to 18 times)

= 22000 + S.I. for 1 year on $\left\{\frac{18}{2}\right(18000+1000\left)\right\}$

$=22000+9\left(19000\right)\times \frac{10}{100}$

= 22000 + 17100

= Rs. 39100

Total cost of scooter = Rs. 39100