Ali buys a used guitar for 24,000. If Ali pays 6,000 ,he has to borrow the balance at 12% p. a simple interest over 3 years . What is his monthly repayment ?[ Hint: Monthly repayments= $\frac {Amount}{ 36 months}$]

Given:

Cost price of the Guitar = Rs. 24000

Down payment = Rs. 6000

Rate of interest = 12%

Time = 3 years

To find :

We have to find the amount to be paid every month.

Solution :

Principal to be paid = Rs. 24000$-$6000 = Rs. 18000

Total amount to be paid  = P $+$ $\frac{PTR}{100}$

                                              = Rs. 18000 $+$ $\frac{18000\times3\times12}{100}$

                                             = Rs. 18000 $+$ $180\times36$

                                             = Rs. 18000$+$6480

                                             = Rs. 24480

The amount to be paid monthly = Rs. $\frac{24480}{36}$ 

The amount to be paid monthly = Rs. 680.

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Updated on: 10-Oct-2022

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