Arun buys a scooter for ₹44000. He pays ₹8000 in cash and agrees to pay the balance in annual instalments of ₹4000 each plus 10% interest on the unpaid amount. How much did he pay for it?

Given:


The amount that is to be paid to buy a scooter = 44000


The amount that he paid by cash = ₹8000


Remaining balance = ₹36000


Annual instalment = ₹4000 + interest@10% on the unpaid amount



UNPAID AMOUNT



Interest on the unpaid amount



Amount of the instalment



1st instalment



36000



=



= 4000 + 3600 = 7600



2nd instalment



32000





= 4000 + 3200 = 7200



Thus, our instalments are 7600, 7200, 6800…….


Total number of instalments



= 9


So our instalments are 7600, 7200, 6800 ... up to 9 terms.


Hint: - All our instalments are in A.P with a common difference of 400.


Here


First term, a = 7200


Common difference = d = 7200 - 7600


d = - 400


Number of terms = 9


Sum of all instalments



= 54000


Hence,


The total cost of the scooter = amount that is paid earlier + amount paid in 9 instalments.


= 8000 + 54000


= 62000


The total cost paid by Arun = 62000


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