A person buys a refrigerator for rupees 12000. He pays rupees 6000 in cash and agrees to pay the balance in 12 annual instalments of rupees 500 each. If the rate of interest is 12% and he pays it with instalments on the unpaid amount,
how much did the refrigerator cost him
The fourth and eleventh terms of an A.P are respectively,11 and 32. Fine the A.P what is the sum of the first eleven terms of the series
To calculate the total cost of the refrigerator, we need to take into account the initial cash payment, the remaining balance, and the interest charged on the unpaid amount.
1. Initial cash payment: The person paid rupees 6000 in cash.
2. Remaining balance: The total cost of the refrigerator is rupees 12000, and the person paid rupees 6000 in cash. Therefore, the remaining balance is rupees 12000 - 6000 = rupees 6000.
3. Instalment payments: The remaining balance of rupees 6000 will be paid in 12 annual instalments of rupees 500 each.
- The total instalment payments over 12 years would be 12 * 500 = rupees 6000.
4. Interest charged: The interest rate is 12%. To calculate the interest charged on the unpaid amount, we can calculate the simple interest.
- Simple Interest = (Principal × Rate × Time) / 100.
- Principal = Unpaid amount = rupees 6000
- Rate = 12% = 12/100 = 0.12 (as a decimal)
- Time = 12 years
Therefore, the interest charged on the unpaid amount is (6000 * 0.12 * 12) / 100 = rupees 864.
5. Total cost:
- Initial cash payment: rupees 6000
- Instalment payments: rupees 6000
- Interest charged: rupees 864
Total cost = Initial cash payment + Instalment payments + Interest charged
= 6000 + 6000 + 864
= rupees 12,864.
Therefore, the refrigerator cost him rupees 12,864.