A man purchase a TV with cash payment of Rs. 12500 and rest amount was paid in two equal installments of Rs.6480 at the rate of 12.5% compound interest. Find the price of TV.
Answer & explanation
Correct answer: option 3
12.5% = \(\frac{1}{8}\)
Principal : Installment
1st → 8 : 9
2nd → 82 : 92
(Make installment equal, multiply 1st by 9)
Principal : Installment
1st → 72 : 81
2nd → 64 : 81
(Total Pri.) 136 : 81 (one installment)
↓ ↓
×80 ×80
↓ ↓
10880 6480 *(given)
Therefore,
Price of TV = 10880 + 12500 = 23380