PRC-2 · Chapter 5 · Question 13 of 50
A delivery vehicle is purchased with an immediate down payment of Rs. 500,000 and an agreement to pay 12 monthly installments of Rs. 40,000 each. What is the total nominal cash price paid over time (ignoring time value of money)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 980,000
Explanation
Total paid equals the down payment plus the sum of all installments: 500,000 + (12 * 40,000) = 500,000 + 480,000 = Rs. 980,000.
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