A housing company has quoted r.s. 19,20,000 for a new flat in one of their buildings.The company that sells the house offers twokinds of instalment plans. Option A: Make aninitial payment of r.s. 4,80,000 and pay the balanceamount after 5 years with an interest at the rateof 19/2%per year. Option B: Make an initialpayment of r.s. 4,80,000 and pay the balance in60 monthly instalments of r.s. 31,200 each.Calculate the total amount paid in each plan.Which option is cheaper, and by how much?

A housing company has quoted r.s. 19,20,000 for a new flat in one of

1.	A housing company has quoted r.s. 19,20,000 for a new flat in one of their buildings.The company that sells the house offers twokinds of instalment plans. Option A: Make aninitial payment of r.s. 4,80,000 and pay the balanceamount after 5 years with an interest at the rateof 19/2%per year. Option B: Make an initialpayment of r.s. 4,80,000 and pay the balance in60 monthly instalments of r.s. 31,200 each.Calculate the total amount paid in each plan.Which option is cheaper, and by how much?
Answer» Option B is CHEAPER by 1 ,20 ,000 APPROX.