HSC Commerce 12th Board ExamMaharashtra State Board
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# 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

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ConceptCommission, Brokerage and Discount

#### 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

= Rs21160

Cash price of television=20000+21160

=Rs41160

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.
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