A TV can be bought for Rs. 20000 cash or by paying in four equal monthly installments withan initial down payment of Rs. 4000. If the rate of interest for this facility is 8% per annum, thenwhat would be the installment charged for each month?
A)rs. 4000
B)rs. 4106.67
C)rs. 4050.33
D)rs. 4066.01

Question

Quizplus · Accepted Answer

The total amount to be paid in installments is Rs. 16000 (Rs. 20000 - Rs. 4000). The interest for 4 months at 8% per annum is calculated on the reducing balance. The monthly installment is calculated using the formula for equated monthly installments (EMI), resulting in approximately Rs. 4066.01.

A TV Can Be Bought for Rs