By the end of this lesson, you'll solve:
"A TV costs Rs 30,000 cash. On installment, you pay Rs 10,000 down and Rs 11,000 per month for 2 months. How much extra did you pay?"
Cash Price vs Installment Price
Picture this: A phone costs Rs 20,000 upfront, but you can also pay Rs 5,000 now and Rs 4,000 a month for 4 months. You end up paying Rs 21,000 total -- that extra Rs 1,000 is the cost of paying later.
Key Points
- 1Cash Price = full amount at once (cheaper)
- 2Down Payment = first payment at purchase time
- 3EMI = fixed monthly payment
- 4Installment Price = Down Payment + all EMIs
- 5Installment Price is usually more than Cash Price
Pro Tip
Installments are like renting money -- you pay extra for the ease of paying later!
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