Question

Mr Ansu bought a television set for 266.00ghana cedis. He made an initial payment of 16.00ghana cedis. The balance was paid at 15% simple interest per annum in twelve months equal instalment. calculate a) The amount paid every month. b) The total amount he paid for the television setset​

Answer 1

Mr Ansu's monthly installment for the TV is approximately 23.96 Ghana cedis, and the total amount paid for the TV after one year is 303.50 Ghana cedis.

Step-by-step explanation:

Mr Ansu purchased a television set for 266.00 Ghana cedis and made an initial payment of 16.00 Ghana cedis. The balance (266.00 - 16.00 = 250.00 Ghana cedis) was to be paid with a 15% simple interest per annum over twelve months in equal installments. To calculate the monthly payment, we first find the total interest for one year on the remaining balance. This is calculated as (Principal x Rate x Time) which is (250.00 x 0.15 x 1) resulting in 37.50 Ghana cedis of interest.

The total amount to be paid back is the original balance plus the interest, which equals to 250.00 + 37.50 = 287.50 Ghana cedis. This total is then divided by 12 to find the monthly installment which is 287.50 / 12 = 23.9583 Ghana cedis approximately. The amount Mr Ansu pays every month is 23.96 Ghana cedis when rounded to two decimal places.

To find the total amount paid for the television set, we add the initial payment to the total amount paid in installments which is 16.00 + 287.50 = 303.50 Ghana cedis. Therefore, the total amount Mr Ansu paid for the television is 303.50 Ghana cedis.