Question

The cost of a set of home appliances is Rs. 36,000. Siri wants to buy them under a scheme of 0% interest and by paying 3 EMI in advance. The firm charges 3% as processing charges. Find the EMI and the total installment for a period of 24 months.

Answer 1

Cost of the set of home appliances $\left(P\right)=36,000$ Rs.

Number of installments $\left(N\right)=24$

Cost of each installment $=\frac{P}{N}=1500$

Amount paid in advance $=1500\times 3=4500$

Processing charge at the rate of $3\%=\frac{36000\times 3}{100}=1080$

Total amount paid $=1500\times 24+10800=36000+1080=37080$

Hence, EMI is Rs. $1,500$ and total installment is Rs. $37,080$