Rohan buys a bike priced at ₹95,000. He pays ₹25,000 at once and the rest after 18 months, on which he is charged a simple interest at the rate of 10% per annum. The total amount (in ₹) he pays for the bike is:
- A1,23,200
- B1,02,320
- C1,03,500
- D1,05,500
Solution & Step-by-step Explanation
The total cost of the bike is ₹95,000.
Rohan pays an initial down payment of ₹25,000.
The remaining principal amount left to be paid is:
P=95000−25000=₹70,000
The time period is 18 months, which in years is:
T=
12
18
=1.5 years
The simple interest rate is R=10% per annum.
The simple interest accrued on the remaining amount is:
SI=
100
P×R×T
=
100
70000×10×1.5
=700×15=₹10,500
The final payment made after 18 months is:
Final Payment=P+SI=70000+10500=₹80,500
The total amount Rohan pays for the bike across both payments is:
Total Amount=Down Payment+Final Payment=25000+80500=₹1,05,500
Rohan pays an initial down payment of ₹25,000.
The remaining principal amount left to be paid is:
P=95000−25000=₹70,000
The time period is 18 months, which in years is:
T=
12
18
=1.5 years
The simple interest rate is R=10% per annum.
The simple interest accrued on the remaining amount is:
SI=
100
P×R×T
=
100
70000×10×1.5
=700×15=₹10,500
The final payment made after 18 months is:
Final Payment=P+SI=70000+10500=₹80,500
The total amount Rohan pays for the bike across both payments is:
Total Amount=Down Payment+Final Payment=25000+80500=₹1,05,500