Raghav buys a shop of Rs. 1,20,000. He pays half of the amount in cash and agrees to pay the balance in 12 annual instalments of Rs. 5000 each. If the rate of interest is 12% and the pays with the instalment the interest due on the unpaid amount, find the total cost of the shop.

Explanation

Given that Raghav buys a shop for `120000.`


He pays half of the amount in cash` = 1/2 * (120000)`


`= 60000.`



Balance amount to be paid` = 120000 - 60000 = 60000.`
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