Question 3

We will find the total cost for each payment option and compare them.

Step 1 — Cost of Instalment Scheme

First, let's calculate the total cost if Ali chooses the instalment plan. The cashdown payment is ₹ 8000. There are 6 monthly instalments. Each instalment is for ₹ 2800.

Total amount paid in instalments: $= 6 \times 2800$ $= 16800$

Total cost for the instalment scheme: $= \text{Cashdown payment} + \text{Total instalment amount}$ $= 8000 + 16800$ $= 24800$

$\boxed{\text{₹ } 24800}$

Step 2 — Cost of Loan Scheme

Now, let's calculate the total cost if Ali takes a loan. The cash price of the TV is ₹ 24000. Ali has ₹ 8000 with him. So, he needs to borrow some money.

Amount Ali needs to borrow: $= \text{Cash price} - \text{Cash Ali has}$ $= 24000 - 8000$ $= 16000$

This ₹ 16000 is the principal amount for the loan. The simple interest rate is 18% per year. The instalment scheme is for 6 months. So, we assume the loan duration is also 6 months.

Time period in years: $= \frac{6}{12} \text{ years}$ $= 0.5 \text{ years}$

Now, let's calculate the simple interest. Simple Interest (SI) formula is $P \times R \times T / 100$.

$SI = \frac{16000 \times 18 \times 0.5}{100}$ $SI = \frac{16000 \times 9}{100}$ $SI = 160 \times 9$ $SI = 1440$

The simple interest is ₹ 1440. The total cost for this option is the cash price plus the interest.

Total cost for the loan scheme: $= \text{Cash price} + \text{Simple Interest}$ $= 24000 + 1440$ $= 25440$

$\boxed{\text{₹ } 25440}$

Step 3 — Compare the Options

Let's compare the total costs. The instalment scheme costs ₹ 24800. The loan scheme costs ₹ 25440.

The instalment scheme is cheaper. It is better for Ali.

Answer

(i) The instalment scheme is better for Ali.