A farmer buys a tracter for Rs 120000. he pays Rs 60000 cash and agrees to pay the balance in annual installments of Rs 5000 plus 12% interest on the unpaid amount. what will the tracter cost him?

To find out the cost of the tractor for the farmer, we need to calculate the total amount he will pay including the principal amount, interest, and installment payments.

1. First, let's calculate the outstanding balance after the initial down payment:
Outstanding balance = Total cost of tractor - Cash payment
Outstanding balance = Rs 120,000 - Rs 60,000
Outstanding balance = Rs 60,000

2. Now, let's calculate the total interest amount for the installment payments:
Total interest amount = (Outstanding balance * Interest rate) / 100
Total interest amount = (Rs 60,000 * 12) / 100
Total interest amount = Rs 7,200

3. Next, let's calculate the total amount paid through installment payments:
Total installment payments = Installment payment amount * Number of installments
Total installment payments = Rs 5,000 * (Total cost of tractor / Installment payment amount)
Total installment payments = Rs 5,000 * (Rs 60,000 / Rs 5,000)
Total installment payments = Rs 60,000

4. Finally, let's calculate the total cost of the tractor for the farmer:
Total cost = Cash payment + Total interest amount + Total installment payments
Total cost = Rs 60,000 + Rs 7,200 + Rs 60,000
Total cost = Rs 127,200

Therefore, the tractor will cost the farmer Rs 127,200 in total.