101. A farmer buys a used tractor for Rs 12000. He pays Rs 6000 cash and agrees to pay the balance in annual instalments of Rs 500 plus 12% interest on the unpaid amount. How much will the tractor cost him?

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9 months ago

101. Given,

cost of tractor =? 12,000

Amount paid =? 62,000

Amount unpaid =? 12000 -? 6000 =? 6000

So, number of instalments =     

 

= ?  6000500

= 12 = n

Now, interest on 1st installment = interest on unpaid amount ( i.e.? 6000) for 1 Year.

=?  6000*12*1100 = ?720

Similarly,

Interest on 2nd installment = interest on (?

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