(a) Anil bought a TV costing ₹ 13000 by making a down payment of ₹ 3000 and agreeing to make equal annual payment for three years. How much would be each payment if the interest on unpaid amount be 14% compounded annually ?
(b) Experts say that the baby boom generation (Indians born between 1946 and 1960) cannot count on a company pension or social security to provide comfortable retirement, as their parents did. It is recommended that they start to save early and regularly. Mahesh, a baby boomer, has deposit ₹ 200 each month for 20 years in an account that pays interest of 7.2% compounded monthly.
(i) How much will be in the account at the end of 20 years?
(ii) Mahesh believes he needs to accumulate ₹ 130,000 in the 20 years period to have enough for retirement. if he can not get higher rate to produce ₹ 130,000 in 20 years. To meet the goal, he must increase her monthly payment. What payment should he make each month? Given that (1.006) 240 = 4.2026