Answer to Question #291212 in Financial Math for Dev

Question

In purchasing a computer, Vivek agrees to pay 20,000 cash and 5,000 at the end of each 6 months for 10 years to completely discharge full cost along with interest. If the rate of interest

is 6% p.a. compounded annually: (1) Find the cost of the computer.

(ii) How much should he pay at the time of 8th payment to discharge his debt including the eighth instalment.