Question

One can purchase a flat from a house building society for Rs. 55,000 cash or on the terms that he should pay Rs. 4,275 as cash down payment and the rest in three equal yearly instalments. The society charges interest at the rate of 16$\%$ per annum compounded half yearly. If the flat is purchased under instalment plan, find the value of each instalment

• A. Rs. 39,683
• B. Rs. 19,683
• C. Rs. 29,683
• D. Rs. 9,683

Answer 1

Answer: (B)

Rs. 19,683

Answer 2

The correct option is (B): Rs. 19,683