A man buys a music system valued at Rs. 8500. He pays Rs. 3500 at once and the…
2023
A man buys a music system valued at Rs. 8500. He pays Rs. 3500 at once and the rest 18 months later. On which he is charged simple interest at the rate of 8% per annum. Find the total amount he pays for the music system.
- A.
Rs.9260
- B.
Rs.9100
- C.
Rs.8720
- D.
Rs.9410
Show answer & explanation
Correct answer: B
Simple interest (SI) on a principal P at rate R% per annum for time T years is SI = (P × R × T)/100, and the total amount payable = Principal + SI. When part of a price is paid immediately and the rest is deferred, interest is charged only on the outstanding (deferred) balance for the deferral period.
Total price = Rs. 8500.
Amount paid immediately = Rs. 3500.
Outstanding (deferred) balance = 8500 − 3500 = Rs. 5000.
Deferral period = 18 months = 18/12 = 1.5 years.
Rate = 8% per annum.
Simple interest on the outstanding balance = (5000 × 8 × 1.5)/100 = Rs. 600.
Total amount paid = amount paid immediately + outstanding balance + interest = 3500 + 5000 + 600 = Rs. 9100.
Cross-check: (Outstanding balance + interest) + amount paid immediately = (5000 + 600) + 3500 = 5600 + 3500 = Rs. 9100, confirming the result.