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Pg 4.37 ICAI Q (8) : 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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Pg 4.37 ICAI Q (8) : A man purchased a house valued at Rs. 300000 . He...
Calculation of Balance Amount:
Amount paid at the time of purchase = Rs. 200000
Balance amount = Rs. 300000 - Rs. 200000 = Rs. 100000
Rate of interest = 12% p.a. compounded half yearly
Number of instalments = 20
Time period for each instalment = 6 months

Calculation of Instalment Amount:
Using the formula for the present value of an annuity, we have:
PV = (C * [1 - (1 + r)^(-n)]) / r
Where,
PV = Present value of instalment
C = Instalment amount
r = Rate of interest per half year
n = Number of instalments

Substituting the given values, we get:
PV = Rs. 100000
r = 12/2 = 6% per half year = 0.06
n = 20

PV = (C * [1 - (1 + 0.06)^(-20)]) / 0.06
100000 = (C * [1 - 0.03119]) / 0.06
C = 100000 * 0.06 / 0.96881
C = Rs. 6188.36

However, the first instalment is paid after 6 months from the date of purchase. Therefore, interest for 6 months needs to be added to the instalment amount.

Interest for 6 months = (100000 * 0.06/2) = Rs. 3000
Instalment amount = Rs. 6188.36 + Rs. 3000 = Rs. 9188.36

Using the given logarithmic values, we get:
log(1.06) = 1.0253
log(31.19) = 1.494

Therefore, the amount of each instalment is Rs. 9188.36, which is closest to option (b) Rs. 8769.21.

Answer: (b) Rs. 8769.21
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Pg 4.37 ICAI Q (8) : 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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Pg 4.37 ICAI Q (8) : 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 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 Pg 4.37 ICAI Q (8) : 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 CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pg 4.37 ICAI Q (8) : 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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