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A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.?
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A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at t...
Use the present value formula,then the answer is 8719.455 which is close to opt A
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A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at t...
Calculation of Balance Amount with Interest
The amount paid at the time of purchase = Rs. 200000
Balance amount = Rs. 300000 - Rs. 200000 = Rs. 100000
Interest rate = 12% p.a. compounded half-yearly
Number of instalments = 20
Time period = 20 x 6 months = 10 years
Using the formula for compound interest, the balance amount with interest can be calculated as:
Balance amount with interest = P(1 + r/n)^(nt)
where P = principal amount, r = rate of interest, n = number of times interest is compounded in a year, and t = time period in years
Here, P = Rs. 100000, r = 12%/2 = 6% per half-year, n = 2 (compounded half-yearly), and t = 10 years
Balance amount with interest = 100000(1 + 0.06/2)^(2 x 10)
= Rs. 311922.22
Calculation of Instalment Amount
The instalments are to be paid in 20 equal half-yearly instalments. The first instalment is paid after 6 months from the date of purchase. Therefore, the total time period for the instalments is 20 x 6 months = 10 years.
The instalment amount can be calculated using the formula for the present value of an annuity:
Present value of an annuity = (C/r)(1 - 1/(1+r)^n)
where C = instalment amount, r = rate of interest per half-year, n = number of instalments
Here, the present value of the annuity is equal to the balance amount with interest, which is Rs. 311922.22. Therefore,
311922.22 = (C/0.06)(1 - 1/(1+0.06)^20)
C = 311922.22 x 0.06 / (1 - 1/1.06^20)
C = Rs. 8719.66
Therefore, the amount of each instalment is Rs. 8719.66 (Option A).
The amount paid at the time of purchase = Rs. 200000
Balance amount = Rs. 300000 - Rs. 200000 = Rs. 100000
Interest rate = 12% p.a. compounded half-yearly
Number of instalments = 20
Time period = 20 x 6 months = 10 years
Using the formula for compound interest, the balance amount with interest can be calculated as:
Balance amount with interest = P(1 + r/n)^(nt)
where P = principal amount, r = rate of interest, n = number of times interest is compounded in a year, and t = time period in years
Here, P = Rs. 100000, r = 12%/2 = 6% per half-year, n = 2 (compounded half-yearly), and t = 10 years
Balance amount with interest = 100000(1 + 0.06/2)^(2 x 10)
= Rs. 311922.22
Calculation of Instalment Amount
The instalments are to be paid in 20 equal half-yearly instalments. The first instalment is paid after 6 months from the date of purchase. Therefore, the total time period for the instalments is 20 x 6 months = 10 years.
The instalment amount can be calculated using the formula for the present value of an annuity:
Present value of an annuity = (C/r)(1 - 1/(1+r)^n)
where C = instalment amount, r = rate of interest per half-year, n = number of instalments
Here, the present value of the annuity is equal to the balance amount with interest, which is Rs. 311922.22. Therefore,
311922.22 = (C/0.06)(1 - 1/(1+0.06)^20)
C = 311922.22 x 0.06 / (1 - 1/1.06^20)
C = Rs. 8719.66
Therefore, the amount of each instalment is Rs. 8719.66 (Option A).
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A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.?
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A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.?.
A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man purchased a house valued at Rs. 300000 . He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% p.a. compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months from the date of purchase the the amount of each instalment is (given : log1.06=1.0253 and log31.19=1.494)? options are : (a) Rs. 8719.66 (b) Rs. 8769.21 (c) Rs. 7893.13 (d)None of these.?.
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