Mathematics for FinanceMTP May 19Question 1496 of 512
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Y bought Motor Bike Costing 80,000\displaystyle 80,000 by making down payment of 30,000\displaystyle 30,000 and agreeing to make annual payment for four years. How much would be each payment if the interest on unpaid amount be 14%\displaystyle 14\% compounded annually.

Options

A17160.25\displaystyle 17160.25
B17600.25\displaystyle 17600.25
C15600.25\displaystyle 15600.25
D16600.25\displaystyle 16600.25
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Correct Answer

✅ Option a — 17160.25\displaystyle 17160.25

All Options:

  • A17160.25\displaystyle 17160.25
  • B17600.25\displaystyle 17600.25
  • C15600.25\displaystyle 15600.25
  • D16600.25\displaystyle 16600.25

Detailed Solution & Explanation

The unpaid balance (PV\displaystyle PV) is: PV=80,000−30,000=50,000PV = 80,000 - 30,000 = 50,000 The annual instalment P\displaystyle P is: P=PVP(4,0.14)=50,0002.9137≈17,160.25P = \frac{PV}{P(4, 0.14)} = \frac{50,000}{2.9137} \approx 17,160.25 Hence, **Option A** is the correct answer.

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