HSC Commerce 12th Board ExamMaharashtra State Board
Share
Notifications

View all notifications
Books Shortlist
Your shortlist is empty

Solution for A Person Bought a Television Set Paying 20 , 000 in Cash and Promised to Pay ` 1,000 at the End of Every Month for the Next 2 Years. If the Money is Worth 12% P.A. Converted Monthly, What is T - HSC Commerce 12th Board Exam - Mathematics and Statistics

Login
Create free account


      Forgot password?

Question

A person bought a television set paying ` 20,000` in cash and promised to pay ` 1,000 at the end of every month for the next 2 years. If the money is worth 12% p.a. converted monthly, what is the cash price of the television set? 

Solution

C = ` 1000, n = 2 years = 24 months 

r = 12% per annum
= 1% per month 

`i=r/100=1/100=0.01` 

Present value `p=C/i[1-(1+i)^-24]`

=`1000/0.01[1+(1+0.001)^24]` 

=`1000/0.01[1-0.7884]`  

=`1000/0.01xx0.2116` 

= Rs`21160` 

Cash price of television=`20000+21160` 

                                =Rs`41160`

  Is there an error in this question or solution?

APPEARS IN

 2017-2018 (March) (with solutions)
Question 6.2.2 | 4.00 marks

Video TutorialsVIEW ALL [1]

Solution A Person Bought a Television Set Paying 20 , 000 in Cash and Promised to Pay ` 1,000 at the End of Every Month for the Next 2 Years. If the Money is Worth 12% P.A. Converted Monthly, What is T Concept: Commission, Brokerage and Discount.
S
View in app×