Question

Volkswagen decides to sell its best-selling car under following different schemes:

Scheme	Selling Price	Initial Payment	Processing Fee	Rate of Interest	Duration
$80\%$ Finance	Rs. $4,\mathrm{00,000}$	$20\%$	$0.5\%$	$10\%$	$2$ years
$100\%$ Finance	Rs. $4,\mathrm{00,000}$	$0\%$	$1\%$	$12.5\%$	$1$ years
$0\%$ Interest	Rs. $4,\mathrm{00,000}$	$3$ EMIs in advance	$1\%$	$0\%$	$2$ years

What is the total amount that need to be paid in the $100\%$ Finance Scheme?

• A. Rs. $4,\mathrm{34,000}$
• B. Rs. $4,\mathrm{67,000}$
• C. Rs. $4,\mathrm{54,000}$
• D. Rs. $4,\mathrm{27,000}$

Answer 1

The correct option is C Rs. $4,\mathrm{54,000}$

For $100\%$ finance scheme:

$\text{Processing fee=1\% of 4,00,000=Rs. 4,000}$

$\text{Initial payments=0\%=0}$

$SI=\frac{PRT}{100}=\frac{4,00,000\times 12.5\times 1}{100}=Rs.50,000$

Hence, total amount that need to be paid is

$Rs.(4,00,000+50,000+4,000)=Rs.4,54,000$