Ques 1.A pressure cooker is available for Rs 180 cash or Rs 70 cash down payment followed by Rs 60 a month for 2 months . Find the rat e of interest charged under the instalment plan.
Ans 1. Present worth of the amount to be paid in instalments = rs (180-70) = 110
Worth of Rs 110 after 2 months =
Ques 2.A house is sold for Rs 30,000 cash or Rs 17,500 cash down payment and instalments of Rs 1,600 per month for eight months . Determine the rate of interest under the instalment plan.
Ans 2. It would be quite tedious to follow the same manner of arriving at the answer as is the preceding examples ( here there are 8 months ).
Instead let's apply a general formula for such problems (the formula is derive the same approach as is in the preceding example) :
The annual instalment that will discharge a debt of Rs A due in T years at R% p.a. simple interest is
For monthly instalment the same formula holds except for the fact that R% ' would be for 'per month '.
Ques 3.I got a loan of Rs 3000 for the repair of my house . The loan is to be paid back in 3 annual instalments . How much is each instalment if the interest is compounded annually on the balance at 5% and is included in each isntalment ?
Ans 3. The loan is to be paid in 3 months instalments .I will pay Rs ( 3000 ÷3) i.e. Rs 1000 every year together with the interest on the balance for 1 year.
Ques 4.A man borrows money on compound interest and return it in three annual instalments. Find the value of each instalment if the borrowed amount is Rs 12,610 and the rate of interest is 5% p.a.
Ans 4. Let each instalment be Rs x.
A sun of Rs 6000 is to be paid in 3 annual instalment .How much is each instalment if the interest is compounded annualy on the 5% p.a. and it is to be includfed in each instalment ?
(a) Rs 2800 , Rs 2700 , Rs 2600
(b) Rs 2300, Rs 2200, Rs 2100
(c) Rs 2000 , Rs 2000 , Rs 2000
(d) None of these
Ans 5. Rs 2300, Rs 2200, Rs 2100
Hint : See solved example no. 4
Ques 6.A house is sold for Rs 12000 cash or Rs 7000 as cash down payment and Rs 630 a month for 8 months .Find the rate of interest per annum.
Ans 6. 2.15%
Ques 7.A sum of Rs 2310 is to be paid in two equal annual instalment . How much is each instalment if the interest is compounded annually at 10%
(a) Rs 105
(b) Rs 1331
(c) Rs 1831
(d) Rs 813
Ans 7. Rs 1331
Ques 8.A sum of money borrowed at 5% per annum compound interest is paid back in three equal annual installment . If each installment is of Rs. 18,522 , the sum borrowed is
(a) Rs 15000
(b) Rs 10830
(c) Rs 50440
(d) Rs 81650
Ans 8. Rs. 50440
Ques 9.A sum of money borrowed and paid back in two equal annual instalments of Rs 882 each allowing 5% p.a. compound interest . What is the sum borrowed ?
(a) Rs 1640
(b) Rs 1050
(c) Rs 1380
(d) Rs 1180
Ans 9. Rs 1640