Simple Interest — Deferred balance with SI on the remainder: A music system costs ₹ 8000. A buyer pays ₹ 3500 now and the balance after 18 months with simple interest at 8% p.a. Find the total amount paid.

Aptitude Simple Interest Difficulty: Easy
Choose an option
Answer

Correct Answer: ₹ 8540

Explanation

Introduction / Context:When a balance is carried forward with simple interest, the interest accrues only on the unpaid remainder for the specified time. The total outlay is the upfront payment plus the future payment including its interest.

Given Data / Assumptions:

  • Cash price = ₹ 8000
  • Paid now = ₹ 3500 → balance principal = ₹ 4500
  • Interest on balance: r = 8% p.a.; t = 18 months = 1.5 years

Concept / Approach:Interest on balance = 4500 * 0.08 * 1.5. Total paid = 3500 + 4500 + interest.

Step-by-Step Solution:

Interest = 4500 * 0.08 * 1.5 = ₹ 540.Total = 3500 + 4500 + 540 = ₹ 8540.

Verification / Alternative check:

Balance with SI equals ₹ 5040 after 18 months; add the cash payment to confirm total.

Why Other Options Are Wrong:

  • Other totals imply incorrect interest on the balance or wrong time conversion.

Common Pitfalls:

  • Treating 18 months as 18 years or forgetting to convert to 1.5 years.

Final Answer:₹ 8540.

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