CA Foundation Exam > CA Foundation Questions > A car is available for 4,98,200 cash payment ...
Start Learning for Free
A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)?
Most Upvoted Answer
A car is available for 4,98,200 cash payment on 60,000 cash down payme...
Total Cost of the Car
The car is priced at ₹4,98,200. A cash down payment of ₹60,000 is made initially, leaving a balance to be financed.
Remaining Balance
- Remaining amount after down payment:
₹4,98,200 - ₹60,000 = ₹4,38,200
Loan Details
- Loan amount: ₹4,38,200
- Annual interest rate: 14% p.a.
- Duration: 3 years
- The formula for calculating the present value of an annuity is:
\[ P = A \times P(3, r) \]
where \( P \) is the present value, \( A \) is the annual payment, and \( P(3, r) \) is the present value factor.
Present Value Factor
Using the provided factor:
- \( P(3, 0.14) = 2.32163 \)
Calculate Annual Installment
To find the annual installment \( A \):
- Rearranging the present value formula gives:
\[ A = \frac{P}{P(3, r)} \]
\[ A = \frac{4,38,200}{2.32163} ≈ ₹1,89,000 \]
Total Payment
- Total amount paid over 3 years:
\( 3 \times 1,89,000 = ₹5,67,000 \)
Total Interest Paid
- Total interest paid can be calculated as:
\[ \text{Total Interest} = \text{Total Payment} - \text{Loan Amount} \]
\[ \text{Total Interest} = ₹5,67,000 - ₹4,38,200 = ₹1,28,800 \]
Summary
- Total Interest Charged: ₹1,28,800
- Annual Installment: Approximately ₹1,89,000
- Total Payment Over 3 Years: ₹5,67,000
The car is priced at ₹4,98,200. A cash down payment of ₹60,000 is made initially, leaving a balance to be financed.
Remaining Balance
- Remaining amount after down payment:
₹4,98,200 - ₹60,000 = ₹4,38,200
Loan Details
- Loan amount: ₹4,38,200
- Annual interest rate: 14% p.a.
- Duration: 3 years
- The formula for calculating the present value of an annuity is:
\[ P = A \times P(3, r) \]
where \( P \) is the present value, \( A \) is the annual payment, and \( P(3, r) \) is the present value factor.
Present Value Factor
Using the provided factor:
- \( P(3, 0.14) = 2.32163 \)
Calculate Annual Installment
To find the annual installment \( A \):
- Rearranging the present value formula gives:
\[ A = \frac{P}{P(3, r)} \]
\[ A = \frac{4,38,200}{2.32163} ≈ ₹1,89,000 \]
Total Payment
- Total amount paid over 3 years:
\( 3 \times 1,89,000 = ₹5,67,000 \)
Total Interest Paid
- Total interest paid can be calculated as:
\[ \text{Total Interest} = \text{Total Payment} - \text{Loan Amount} \]
\[ \text{Total Interest} = ₹5,67,000 - ₹4,38,200 = ₹1,28,800 \]
Summary
- Total Interest Charged: ₹1,28,800
- Annual Installment: Approximately ₹1,89,000
- Total Payment Over 3 Years: ₹5,67,000
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)?
Question Description
A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? 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 car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)?.
A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? 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 car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)?.
Solutions for A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? defined & explained in the simplest way possible. Besides giving the explanation of
A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)?, a detailed solution for A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? has been provided alongside types of A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? theory, EduRev gives you an
ample number of questions to practice A car is available for 4,98,200 cash payment on 60,000 cash down payment followed by 3 equal annual instalments of the rate of interest charged is 14% p.a. compounded yearly. Total interest changed is instalment plans is (Given P (3,0.14) = 2.32163)? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup