Samar leased a car worth Rs 1,547,000 with a down payment of 50%. If the rate of simple interest onthe remaining amount is 7% per annum for a period of 2 years, find thea. total interest Samar pays in 2 years. (2 Marks)b. total cost of the car.
Question
Samar leased a car worth Rs 1,547,000 with a down payment of 50%. If the rate of simple interest onthe remaining amount is 7% per annum for a period of 2 years, find thea. total interest Samar pays in 2 years. (2 Marks)b. total cost of the car.
Solution
a. To calculate the total interest Samar pays in 2 years, we first need to find out the remaining amount after the down payment.
The down payment is 50% of the car's worth, so:
Down payment = 50/100 * 1,547,000 = Rs 773,500
The remaining amount is the car's worth minus the down payment:
Remaining amount = 1,547,000 - 773,500 = Rs 773,500
The formula for simple interest is I = PRT/100, where P is the principal amount (the remaining amount), R is the rate of interest, and T is the time in years.
So, the total interest Samar pays in 2 years is:
Interest = 773,500 * 7 * 2 / 100 = Rs 108,290
b. The total cost of the car is the down payment plus the remaining amount plus the interest:
Total cost = 773,500 (down payment) + 773,500 (remaining amount) + 108,290 (interest) = Rs 1,655,290
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