Multiple choice

Monika buys a Samsung's 360 litre refrigerator from M/s Coldrush Agencies for Rs. 42,000. She makes a down payment of Rs. 12,000 and the remaining amount in 4 equal half yearly instalments. If M/s Coldrush Agencies charge an interest of 10% per annum, approximately what amount Monika has to pay every six months?

  1. Rs. 8230

  2. Rs. 8600

  3. Rs. 8460

  4. Rs. 8620
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Principal = 42,000 - 12,000 = 30,000. Interest is 10% per annum, so 5% per half-year. Using the formula for equal installments on a reducing balance, the amount is approximately 8460.

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