A man buys a scooter on making a cash down payment of 16,224 and promises to pay two more yearly equal instalments of equivalent amount in next two years. If the rate of Interest is 4% p.a compounded yearly, then, the caash value of the scooter is:: (i) 40,000 (ii) 46,824 (iii) 46,000 (iv) 50,000
So, If i assume theat the net cash value of the scooter is X. The, the amount left after making a cash payment of 16,224 should be ( X - 16,224 ).
Now, this man has to pay 2 yearly equal instalments. So, Let each instalment be Y.
So, I can caluculate the present worth of this instalment Y in two successive years and Get the value Y as;;
( P.w of Y in 1st year ) + ( P.W of Y in 2nd year ) = X - 16,224.
But, the number of variables here are excessive.
How, do I solve this..?? Help.