Question

$Y$ bought a $CD$ Player costing $Rs.13,000$ by making a down payment of $Rs.3,000$ and agreeing to make equal annual payment for four years. How much would be each payment if the interest on unpaid amount be $14$% compounded annually? $\left[P\right(4,0.14\left)2.91371\right]$.

• A. $Rs.3,432.05$
• B. $Rs.3,423.50$
• C. $Rs.3,342.05$
• D. $Rs.3,234.50$

Answer 1

The correct option is A $Rs.3,432.05$

$V=A.P.(n,i)$
Here $n=4$ and $i=0.14$
$=\frac{10,000}{P(4,0.14)}$
$\left[P\right(20,0.10)=8.51356$ from table $2\left(a\right)$]
$=\frac{10,000}{2.91371}$
$=Rs.3,432.05$. Therefore each payment would be $Rs.3,432.05$.