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B acquired on January 1, 2018, a machine under a hire purchase agreement
which provides for five half yearly instalments Rs. 6,000 each, the first
instalment being due on July 1, 2018. Assuming that the applicable rate of
interest is 10% p.a, calculate the cash value of the machine.?
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B acquired on January 1, 2018, a machine under a hire purchase agreeme...
Calculation of Cash Value of Machine

Given Data:
- Machine cost: Rs. 6,000
- Instalment amount: Rs. 6,000 (paid half-yearly)
- Rate of interest: 10% p.a
- First instalment due on: July 1, 2018

Calculation:
1. Calculate Present Value of Instalments:
- Using the formula for present value of an annuity:
PV = Pmt x [(1 - (1 + r)^-n) / r]
Where,
PV = Present Value
Pmt = Instalment amount
r = Rate of interest per period
n = Number of periods
2. Calculate Present Value of Machine:
- The present value of the machine can be calculated by discounting the total instalments at the rate of interest.
- The cash value of the machine is the sum of present value of instalments and the present value of the last instalment.
3. Final Calculation:
- Calculate the present value of all five instalments and add it to the present value of the last instalment to get the cash value of the machine.
Therefore, by following the above steps and calculations, you can determine the cash value of the machine acquired by B on January 1, 2018.
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B acquired on January 1, 2018, a machine under a hire purchase agreement which provides for five half yearly instalments Rs. 6,000 each, the first instalment being due on July 1, 2018. Assuming that the applicable rate of interest is 10% p.a, calculate the cash value of the machine.?
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B acquired on January 1, 2018, a machine under a hire purchase agreement which provides for five half yearly instalments Rs. 6,000 each, the first instalment being due on July 1, 2018. Assuming that the applicable rate of interest is 10% p.a, calculate the cash value of the machine.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about B acquired on January 1, 2018, a machine under a hire purchase agreement which provides for five half yearly instalments Rs. 6,000 each, the first instalment being due on July 1, 2018. Assuming that the applicable rate of interest is 10% p.a, calculate the cash value of the machine.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B acquired on January 1, 2018, a machine under a hire purchase agreement which provides for five half yearly instalments Rs. 6,000 each, the first instalment being due on July 1, 2018. Assuming that the applicable rate of interest is 10% p.a, calculate the cash value of the machine.?.
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