Final answer:
The correct answer is e) Rs.3016. The amount of each installment for the computer, considering a 12% per annum interest rate and a Rs.4800 down payment on a total price of Rs.19200, is calculated using the present value of an annuity formula. The monthly installment is closest to Rs.3016.
Step-by-step explanation:
To calculate the amount of each installment for the computer, we need to use the concept of present value of an annuity. Since the total cash price is Rs.19200 and the down payment is Rs.4800, the balance to be financed through installments is Rs.14400. With a rate of interest of 12% per annum charged monthly, we need to find the present value of an annuity that would total up to Rs.14400.
The monthly interest rate is 12% per annum, therefore 1% per month. The formula for the present value of an annuity is PV = PMT [1 - (1 + i)^-n] / i, where PMT is the monthly payment, i is the monthly interest rate, and n is the number of payments. We have PV = Rs.14400, i = 0.01 (1% per month), and n = 5 (number of installments).
Using the formula, we get Rs.14400 = PMT [1 - (1 + 0.01)^-5] / 0.01. Solving for PMT, we find that the amount of each monthly installment is nearest to Rs.3016.