A person buys a washing machine on the condition that he shall pay a sum of INR 5880 as cash down payment and the same sum at the end of the first year and the two years. what is the total interest(in INR) paid by him under this scheme, if the rate of interest is 5% compounded yearly? (Nearest to a INR)?

• Let say Cost of washing Machine = 100C rs
  
  Paid as down payment = 5880
  
  Remaining Amount = 100C - 5880
  
  Interest in 1st Year = (100C - 5880) * 5 * 1 /100 = 5C - 294
  
  Amount left to be paid = 100C - 5880 - 5880 + 5C - 294
  
  = 105C - 12054
  
  Interest in 2nd year =( 105C - 12054) * 5 * 1 /100
  
  Amount to be Paid
  
  105C - 12054 + ( 105C - 12054) * 5 * 1 /100 = 5880
  
  => 105C - 12054 = 5600
  
  => C = 168.13
  
  100C = 16813
  
  Interest Paid = 3 * 5880 - 16813 = 826.67
  
  = 827
  
  the total interest(in INR) paid by him under this scheme, = 827
• 4 years agoHelpfull: Yes(2) No(6)