The price of tv set worth rs.20000 is to be paid in 20 installments of rs.1000 each.If the rate of interest be 6% per annum and the first installment be paid at the time of purchase, then the value of the last installment covering the interest as well will be:

a)rs.1050

b)rs.2050

c)rs.3000

d)none of these

From the prins given the answer is c) 3000 rs.................. This is because interest of 12 months is 6 perent therefore interest of 20 months =(20/12)×6 = 10 percent........................Now 10 percent of 20000 is equal to 2000 rs and on adding 2000 to last instalment that is 1000rs the total is real to 3000 rs............... Hope it helps