Question

The cost price of a refrigerator is Rs. $16,800$. Ranjith wants to buy the refrigerator at $0$% finance scheme paying $3$ E.M.I in advance. A processing fee of $3$% is also collected from Ranjith. Find the E.M.I. and the total amount paid by him for a period of $24$ months.

Answer 1

Cost of refrigerator =Rs $16800$

Interest$\left(R\right)=0$

Period $\left(N\right)=24$ months

$\therefore$ EMI =$16800+\frac{0}{24}$

=Rs$700$

(we add $0$ to $16800$ since there is no or zero interest)

$3$ EMI is paid in advance

$\therefore$ Amount $v$ paid =$700\times 3$= $Rs2100$

Processing rate =$3\%$

$\therefore Processingcharge=\frac{3}{100}\times 16800$

$=Rs504$

$\therefore \text{total amount paid}=CP+2100+504$

$=$ $16800+2100+504$

$=Rs19404$

$\therefore EMI=Rs700$

Total amount paid=$Rs19404$.