Neeraj buys a bike on making a cashdown payment of Rs. 17,496 and promises to pay two more yearly installments of equivalent amount in next two years. If the rate of interest is 8% per annum compounded yearly, the cash value of the bike is (in Rs.):
(a) Rs. 45,676
(b) Rs. 48,696
(c) Rs. 50,676
(d) Rs. 52,696
Sol:
⇒ P₂ = Rs. 15,000
∴ cash value = Rs. 17,496 + Rs. 15,000 + Rs. 16,200
= Rs. 48696
