CBSE Class 10 Maths Instalment

Chapter 6

Instalment

Instalments

Sometimes buyer is not able to purchase an article due to lack of money. Although they are in great need of the same. Businessmen starts selling their articles by installments. The purchaser need not to pay the entire amount at the time of purchase. A part of this is paid at the time of purchase and the rest is paid in easy installments may be monthly quarterly, half year or even annually. Flats and houses are also purchased in this scheme. some times loans are also returned to the bank or finance company by the installments.

ISNTALMENT BUYING (PURCHASE) SCHEME:

Purchaser when pays whole amount of the article at the time of purchase it is called the cash price.

The part payment at the time of purchase done by the customer is called cash down payment.

Let us try some example to understand the problems:

Example 1. An electric iron is sold for Rs. 440 cash or for Rs. 200 cash down payment together with Rs. 244 to be paid after one month. Find the rate of interest charged is the instalment scheme.

Solution:- Cash price of the iron = Rs. 440 In the instalment plan,

                 Cash down payment = Rs. 200

The remaining price to be paid back in the instalment plane

             has to its present value = Rs. 440 - Rs. 200 = Rs. 240

The instalment paid at the end of one month = Rs. 244.

Interest charged on Rs. 240, for a period of one month = Rs. 244 - Rs. 240 = Rs. 4

Let rate of interest be r% p.a.

240 x r x 1 /100 x 12 = 4

r = 100 x 12 x 4 /240 = 20%

rate of interest charged under instalment plane = 20%.

Exercise - 9

1. A suitcase is listed at Rs.800. It is available for Rs. 500 cash down payment and Rs. 325 to be paid back after six months. Find the rate of interest charged under the instalment plan.

2. A table is available for Rs. 1800 cash or for Rs. 600 cash down payment followed by two monthly instalment of Rs. 610 each. Compute the rate of interest charged under the instalment plan.

3. An electric iron is available for Rs. 550 cash or for Rs. 250 cash down payment followed by Rs. 305 to be paid after two months. Find the rate of interest charged under this scheme.

4. A pressure cooker is available for Rs. 500 cash or for Rs. 250 cash down payment together with Rs.260 after three months. Find the rate of interest charged under this scheme.

5. A wrist watch is sold for Rs. 960 cash or for Rs. 480 cash down payment and also two equal monthly instalments of Rs. 245 each. Calculate the rate of interest charged under two schemes.

6. A mixi is available for Rs. 1500 cash or for Rs. 360 cash down payment together with three equal monthly instalment of Rs. 390 each. Find the rate of interest charged under the instalment plan.

7. A scooter is available for Rs. 28000 cash or for Rs. 7400 cash down payment together with four equal monthly instalment of Rs. 5200 each. Find the rate of interest charged under the instalment scheme.

8. A cooking range can be buyed for Rs. 2500 cash or for Rs. 520 cash down payment together with four equal monthly instalments. If the rate of interest be 25%p.a. find the monthly instalment.

9. A washing machine is listed at Rs. 6400 cash or for Rs. 1400 as cash down payment followed by five equal monthly instalment of Rs. 1030. Find the rate of interest charged under the instalement scheme.

10. A computer is available for Rs. 19,200 cash or for Rs. 4800 cash down payment followed by five monthly instalement of equal value . If the rate of interest is 12% p.a. find each instalment.

11. A typing machine can be purchased for Rs. 7200 cash or for Rs. 3040 cash down payment and five equal monthly instalment of Rs. 860 each. Calculate the rate of interest charged under the instalment plan.

Please refer to attached file for CBSE Class 10 Maths Instalment