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Q.14 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]
- a)Rs. 8719.66
- b)Rs. 8769.21
- c)Rs. 7893.13
- d)None of these.
Correct answer is option 'A'. Can you explain this answer?
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Q.14A man purchased a house valued at Rs. 300000. He paid Rs. 200000 a...
Given:
- Value of the house = Rs. 300000
- Amount paid at the time of purchase = Rs. 200000
- Balance to be paid with interest at 12% per annum compounded half yearly
- Number of instalments = 20
- First instalment is paid after six months from the date of purchase
- log 10.6 = 1.0253 and log 31.19 = 1.494
To find:
- Amount of each instalment
Solution:
1. First, we need to calculate the balance amount to be paid after the initial payment of Rs. 200000.
Balance amount = Rs. 300000 - Rs. 200000 = Rs. 100000
2. We need to calculate the interest rate per half year. The interest rate per annum is 12%, so the interest rate per half year would be half of 12%, i.e., 6%.
Interest rate per half year = 6%
3. We need to calculate the value of (1 + r), where r is the interest rate per half year.
(1 + r) = (1 + 6/100)^1/2 = 1.03
4. We also need to calculate the present value of the instalments, which can be calculated using the formula:
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the interest rate per half year, and n is the number of half years.
5. Let X be the amount of each instalment. The future value of the instalments after 20 half years can be calculated as follows:
FV = X * [(1 + r)^n - 1] / r
where n is the number of instalments, which is 20.
6. Since the first instalment is paid after six months from the date of purchase, there are only 19 instalments left. Therefore, the future value of the instalments can be calculated as:
FV = X * [(1 + r)^19 - 1] / r
7. The present value of the instalments should be equal to the balance amount of Rs. 100000. Therefore, we can equate the present value and the balance amount and solve for X:
PV = FV / (1 + r)^n = 100000
X * [(1 + r)^19 - 1] / r / (1 + r)^20 = 100000
X = 100000 * r * (1 + r)^20 / [(1 + r)^19 - 1]
Using the value of (1 + r) calculated earlier, we get:
X = 8719.66 (approx.)
Therefore, the amount of each instalment is Rs. 8719.66.
Answer: a) Rs. 8719.66
- Value of the house = Rs. 300000
- Amount paid at the time of purchase = Rs. 200000
- Balance to be paid with interest at 12% per annum compounded half yearly
- Number of instalments = 20
- First instalment is paid after six months from the date of purchase
- log 10.6 = 1.0253 and log 31.19 = 1.494
To find:
- Amount of each instalment
Solution:
1. First, we need to calculate the balance amount to be paid after the initial payment of Rs. 200000.
Balance amount = Rs. 300000 - Rs. 200000 = Rs. 100000
2. We need to calculate the interest rate per half year. The interest rate per annum is 12%, so the interest rate per half year would be half of 12%, i.e., 6%.
Interest rate per half year = 6%
3. We need to calculate the value of (1 + r), where r is the interest rate per half year.
(1 + r) = (1 + 6/100)^1/2 = 1.03
4. We also need to calculate the present value of the instalments, which can be calculated using the formula:
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the interest rate per half year, and n is the number of half years.
5. Let X be the amount of each instalment. The future value of the instalments after 20 half years can be calculated as follows:
FV = X * [(1 + r)^n - 1] / r
where n is the number of instalments, which is 20.
6. Since the first instalment is paid after six months from the date of purchase, there are only 19 instalments left. Therefore, the future value of the instalments can be calculated as:
FV = X * [(1 + r)^19 - 1] / r
7. The present value of the instalments should be equal to the balance amount of Rs. 100000. Therefore, we can equate the present value and the balance amount and solve for X:
PV = FV / (1 + r)^n = 100000
X * [(1 + r)^19 - 1] / r / (1 + r)^20 = 100000
X = 100000 * r * (1 + r)^20 / [(1 + r)^19 - 1]
Using the value of (1 + r) calculated earlier, we get:
X = 8719.66 (approx.)
Therefore, the amount of each instalment is Rs. 8719.66.
Answer: a) Rs. 8719.66
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Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer?
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Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? 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 Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer?.
Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? 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 Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Q.14A 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% per annum compounded half yearly in 20 equal half yearly instalments. If the first instalment is paid after six months form the date of purchase then the amount of each instalment is[Given log 10.6 = 1.0253 and log 31.19 = 1.494]a)Rs. 8719.66b)Rs. 8769.21c)Rs. 7893.13d)None of these.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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