Question

The cost of a computer is $20,000$. The company offers it in $36$ months, but charges $10$% interest. Find the monthly installment the purchaser has to pay.

Answer 1

Cost of computer $=$ $20,000$, Interest $=10$% p.a., Period $=36$ months ($3$ years)
Total Interest $=20000\times \frac{10}{100}\times 3$
$=$ $6,000$
$\therefore$ Total amount to be paid $=20,000+6,000$
$=$ $26,000$
Monthly Installment $=\frac{Totalamount}{Numberofmonths}$
$=\frac{26000}{36}$
$=$ $722.22$
$\simeq$ $722$