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