XAT 2019 Interest Question (Medium)

Question

A computer is sold either for Rs.19200 cash or for Rs.4800 cash down payment together with five equal monthly installments. If the rate of interest charged is 12 per annum compounded annually, then the amount of each installment nearest to a rupee is

Optima Learn · Accepted Answer

The amount on which interest is charged is the balance after down payment. 19200 - 4800 14400 Let the value of each monthly installment be I and the effective monthly rate of interest be r. Given the annual rate of interest is 12 compounded annually, the equivalent monthly rate r satisfies 1 r 12 1.

XAT 2019 Interest — Previous Year Question

XAT 2019

Quantitative

Interest

Medium

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