A car with a price of Rs.6,50,000 is bought by making some down payment. On balance, a simple interest of 10% is charged in lump sum and the money is to be paid in 20 equal annual installments of Rs.25,000. How much is the down payment?
Money to be paid as installments =20×25000=500000. Total paid amount with 10% simple interest = 5000000×100/110 =454545.455Rs. Now downpayment =650000-454545.455=195455Rs
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