A farmer buys a used tractor for Rs 12000. He pays Rs 6000 cash and agrees to pay the balance in annual installments of Rs 500 plus 12% interest on the unpaid amount. How much will be the tractor cost him?

Given, the rancher pays Rs 6000 in real money.

 

In this way, the neglected sum

   

From the inquiry, the interest paid every year will be

 

   

Subsequently, the absolute premium to be paid

   

 

   

   

It’s seen that, the series

   

an A.P. with the initial term and normal contrast both equivalent to

   

How about we take the quantity of terms of the A.P. to be n.

 

In this way,

   

   

   

Presently,

 

The amount of the

   

 

Subsequently, the absolute premium to be paid

   

 

   

Subsequently, the work vehicle will cost the rancher