Calculate Total Washing Machine Cost

This problem involves calculating the total amount paid for a washing machine, considering an initial payment and simple interest on the remaining balance.

Determine Remaining Balance for Interest

First, find the amount left to pay after the initial down payment. This amount acts as the principal for the simple interest calculation.

Total Purchase Price = $₹12,000$

Down Payment = $₹2,000$

Remaining Amount = Total Purchase Price - Down Payment

Remaining Amount = $12,000 - 2,000 = 10,000$

Thus, the principal amount subject to interest is $₹10,000$.

Calculate Simple Interest Charged

Calculate the simple interest accrued on the remaining amount over one year.

Principal (P) = $10,000$

Rate of Interest (R) = $10\%$ per annum

Time (T) = $1$ year

The formula for Simple Interest (SI) is:

$ SI = \frac{P \times R \times T}{100} $

Plugging in the values:

$ SI = \frac{10000 \times 10 \times 1}{100} $

$ SI = 1000 $

The simple interest payable is $₹1,000$.

Compute Final Total Amount Paid

Finally, calculate the total amount paid by summing the down payment and the total amount due after one year (which includes the principal balance plus the calculated simple interest).

Amount payable after 1 year = Principal + Simple Interest

Amount payable after 1 year = $10,000 + 1,000 = 11,000$

Total Amount Paid = Down Payment + Amount payable after 1 year

Total Amount Paid = $2,000 + 11,000 = 13,000$

Therefore, the total amount the man pays for the washing machine is $₹13,000$.