question_answer

Ramesh buys a shop for Rs. 120000. He pays half of the amount in cash and agrees to pay the balance in 12 annual installments of Rs. 5000 each. If the rate of interest is 12% and he pays with the installment the interest due on the unpaid amount, find the total cost of the shop.

A) Rs. 166800

B) Rs. 175000

C) Rs. 157900                  

D) Rs. 215091

E) None of these