A car is purchased on hire-purchase. The cash price is $21 000 and the terms are a deposit of 10% of the price, then the balance to be paid off over 60 equal monthly instalments. Interest is charged at 12% p.a. What is the monthly instalment?

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Asked: August 30, 20212021-08-30T00:41:44+05:30 2021-08-30T00:41:44+05:30Category: Quantitative Aptitude - Arithmetic Ability

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Mighty Ashish · Answer 1 · 2021-08-30T00:42:27+05:30

Explanation:

Cash price = $21 000

Deposit = 10% × $21 000 = $2100

Loan amount = $21000 − $2100 = $18900

I=p x r x t/100

I=11340

Total amount = 18900 + 11340 = $30240

Regular payment = total amount /number of payments