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A man purchased a house valued at ` 3,00,000. He paid ` 2,00,000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase then the amount of each instalment is?
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A man purchased a house valued at ` 3,00,000. He paid ` 2,00,000 at th...
Solution:

Given:
- Principal amount = ` 3,00,000
- Amount paid initially = ` 2,00,000
- Rate of interest = 12% per annum
- Compounded half-yearly
- Number of instalments = 20

Calculation:
1. Calculate the balance amount to be paid:
Principal amount - Amount paid initially = ` 3,00,000 - ` 2,00,000 = ` 1,00,000
2. Calculate the half-yearly interest rate:
Half-yearly interest rate = Annual interest rate / 2
Half-yearly interest rate = 12% / 2 = 6%
3. Calculate the number of half-yearly periods:
Number of instalments = 20
Number of half-yearly periods = 20 * 2 = 40 half-yearly periods
4. Calculate the amount of each instalment using the formula for compound interest:
A = P(1 + r/100)^n
Where,
A = Amount to be paid in each instalment
P = Principal amount
r = Rate of interest per period
n = Number of periods
A = ` 1,00,000 (1 + 6/100)^40
5. Calculate the amount of each instalment:
A = ` 1,00,000 (1.06)^40 ≈ ` 1,00,000 * 3.2071 ≈ ` 3,20,710
Therefore, the amount of each instalment is approximately ` 3,20,710.
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A man purchased a house valued at ` 3,00,000. He paid ` 2,00,000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase then the amount of each instalment is?
Question Description
A man purchased a house valued at ` 3,00,000. He paid ` 2,00,000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase then the amount of each instalment is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A man purchased a house valued at ` 3,00,000. He paid ` 2,00,000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase then the amount of each instalment is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man purchased a house valued at ` 3,00,000. He paid ` 2,00,000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase then the amount of each instalment is?.
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