Shamshad Ali buys a Scooter for ₹ 22000. He pays ₹ 4000 cash and agrees to pay the balance in annual instalments of ₹ 1000 plus 10% interest on the unpaid amount. How much the Scooter will cost him?

Given: Price of the scooter is Rs. 22000. He pays ₹ 4000 cash and agrees to pay the balance in annual instalments of Rs. 1000 plus 10% interest on the unpaid amount.


To find: Total cost of the scooter if he buys it at installment


Total price = 22000


Paid amount = 4000


Unpaid amount = 22000 – 4000 = 18000


He pays remaining 18000 in n number of installments of 1000 each



Cost incurred by him to pay remaining 18000,




Formula used:



where a is first term, d is common difference and n is number of terms in an A.P.


Therefore,







= 35100


Total cost = 4000 + 35100 = 39100


Hence, total cost of the scooter if he buys it at installment is Rs. 39100


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