Multiple choice

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, then the amount of each installment (nearest to a rupee) is:

  1. Rs.2880

  2. Rs.2965

  3. Rs.2896

  4. Rs.2990

  5. Rs.3016
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The cash price is 19200. The down payment is 4800, leaving a balance of 14400 to be paid in 5 installments. Using the formula for installments with interest, the monthly payment is calculated as approximately 2965.

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