# Discussion on CAT

Posted on: 07:17:56 PM on May 11, 2020
Posted By:
smileykaushik7
Case 5 Mr. Kunal Dwivedi wants to buy a motorbike which is price at Rs45,500. The bike is also available at Rs25,000 down payment and monthly installments of Rs1000 per month or 2 years or Rs 18,000 down payment and monthly installment o Rs 1000 per month for 3 years. Mr.Kunal has with him only Rs 12,000. He he wants to borrow the balance money of the down payment from a private lender whose terms are: If rs 6,000 is borrowed or 12 months, the rate of interest is 20 percent. The interest will be calculated on the whole amount for the year, even though the repayment has to be done in 12 equal monthly installments starting from the first month itself. Thus he will have to repay an amount o rs 600 per month for 12 months to repay Rs 6000 (principle) + Rs1200 (interest @ 20 percent). If rs 10,000 upwards is borrowed for one year, the rate of interest is 30 percent and is calculated in exactly the same manner as above." PLEASE PROVIDE DETAILED SOLUTION OF THIS QUESTION AT THE EARLIEST

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