Solution:
We have to find the total cost of the tractor if he buys it in installments.
Total price ₹ 12000
Paid amount ₹ 6000
Unpaid amount ₹ ₹ 6000
He pays remaining ₹ 6000 in ‘’ no. of installments of ₹ 500 each.
Cost incurred by him to pay remaining 6000 is
The AP will be:
of 6000 of 5500 up to 12 terms
of up to 12 terms
Using the formula,
Total cost
As a result, the total cost of the tractor if he buys it in installment is ₹ 16680.