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EMATÄ°CAL MODELLINGTV. can be purchased for Rs 24000 cash or for Rs 8000 cashdown payment and six.tly instalments of Rs 2800 each. Ali goes to market to buy a T.V., and he hasas 8000 with him. He has now two options. One is to buy TV under instalmentscheme or to make cash payment by taking loan from some financial society. Theiety charges simple interest at the rate of 18% per annum simple interest which343option is better for Ali? |
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Answer» Cash price of ATV = 24000 If using installment scheme: Cash down payment = 8000Six monthly installment each of Rs 2800 = 6*2800 = 16800Then ATV will cost = 8000 + 16800= 24800 If taking loan from financial society: Cash down payment = 8000Remaining amount = 24000 - 8000 = 16000Now SI will charge on 16000 at18% per annumSI = 16000*18*1/100SI = 160*18 = 2880Then ATV will cost = 8000 + 16000 + 2880= 26880 Therefore, installment scheme is better for Ali. |
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