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X &co purchased motor car on April 1 2019 on hire_purchase paying 60000 cash down and balance in four annual installment of 55000 ,50000 ,45000,and 40000 each installment comprising equal amount of cash price at the end of each accounting period.you are required to calculate total cash price and amount of interest in each installment?
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X &co purchased motor car on April 1 2019 on hire_purchase paying 6000...
Total Cash Price Calculation
To find the total cash price of the motor car, we add the initial cash payment to the total of all installments.
- Initial Cash Payment: ₹60,000
- Installments Total:
- 1st Installment: ₹55,000
- 2nd Installment: ₹50,000
- 3rd Installment: ₹45,000
- 4th Installment: ₹40,000
- Total Installments:
₹55,000 + ₹50,000 + ₹45,000 + ₹40,000 = ₹190,000
- Total Cash Price:
₹60,000 (cash) + ₹190,000 (installments) = ₹250,000
Interest Calculation in Each Installment
To determine the interest in each installment, we first need to ascertain the cash price allocated to each installment. Assuming the cash price is distributed equally, we need to calculate the interest on the outstanding balance for each installment.
1. Equal Cash Price per Installment:
₹250,000 / 4 = ₹62,500 (approx.)
2. Outstanding Balance and Interest:
- 1st Installment (₹55,000):
- Outstanding: ₹250,000 - ₹62,500 = ₹187,500
- Interest: ₹187,500 * (Interest Rate / 100)
- 2nd Installment (₹50,000):
- Outstanding: ₹187,500 - ₹62,500 = ₹125,000
- Interest: ₹125,000 * (Interest Rate / 100)
- 3rd Installment (₹45,000):
- Outstanding: ₹125,000 - ₹62,500 = ₹62,500
- Interest: ₹62,500 * (Interest Rate / 100)
- 4th Installment (₹40,000):
- Outstanding: ₹62,500 - ₹62,500 = ₹0
- Interest: ₹0
Summary
- Total Cash Price: ₹250,000
- Interest in each installment: Calculated based on the outstanding balance after each payment.
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X &co purchased motor car on April 1 2019 on hire_purchase paying 60000 cash down and balance in four annual installment of 55000 ,50000 ,45000,and 40000 each installment comprising equal amount of cash price at the end of each accounting period.you are required to calculate total cash price and amount of interest in each installment?
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X &co purchased motor car on April 1 2019 on hire_purchase paying 60000 cash down and balance in four annual installment of 55000 ,50000 ,45000,and 40000 each installment comprising equal amount of cash price at the end of each accounting period.you are required to calculate total cash price and amount of interest in each installment? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about X &co purchased motor car on April 1 2019 on hire_purchase paying 60000 cash down and balance in four annual installment of 55000 ,50000 ,45000,and 40000 each installment comprising equal amount of cash price at the end of each accounting period.you are required to calculate total cash price and amount of interest in each installment? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X &co purchased motor car on April 1 2019 on hire_purchase paying 60000 cash down and balance in four annual installment of 55000 ,50000 ,45000,and 40000 each installment comprising equal amount of cash price at the end of each accounting period.you are required to calculate total cash price and amount of interest in each installment?.
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