A man buys a scooter on making a cash down payment of Rs.16224 and promises to pay two more yearly instalments of equivalent amount in next two years. If the rate of interest is 4% per annum, compounded yearly, the cash value of the scooter, is
Options:
A . Rs.50000
B . Rs.40000
C . Rs.46000
D . Rs.46824
Answer: Option D Answer: (d)Using Rule 1,If A = Amount, P = Principal, r = Rate of Compound Interest (C.I.), n = no. of years then,A=P$(1 + r/100)^n$, C.I. = A - PC.I. = P$[(1 + r/100)^n - 1]$
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