Question

A man buys a TV and pays Rs. 8,000 cash and Rs. 9,600 at 5 yr credit at 4% per annum simple interest. Find the cash price of the TV?

1. Rs. 16.000
2. Rs. 17,600
3. Rs. 19,520
4. Rs. 15,000

Answer 1

Correct Answer - Option 3 : Rs. 19,520

Given

A man buys a TV and pays Rs. 8,000 cash and Rs. 9,600 at 5 yr credit at 4% per annum simple interest. 

Concept used

Simple interest

Calculation

The amount paid in cash = Rs.8000

Amount paid in credit = (Rs.9600 + interest)

Si = (P × R × T) / 100

Si = \(\frac{{9600\ \times\ 4\ \times\ 5}}{{100}}\)

Si = Rs.1920

Cash price = Rs.8000 + Rs.9600 + Rs.1920

Cash price = Rs.19520