Calculating The Cost Of Mr. Arora's Car Purchase: A Math Problem
This article delves into a simple yet practical mathematical problem involving Mr. Arora's purchase of a car. We will break down the problem, identify the key information, and use basic arithmetic to arrive at the solution. This exercise is a great example of how math is used in our daily lives, particularly when making financial decisions. Understanding how to calculate the total cost of a purchase, especially when dealing with loans and savings, is an essential skill for everyone.
Understanding the Problem
The core of this mathematics problem lies in determining the overall cost of the car Mr. Arora bought. To do this, we need to consider two crucial pieces of information: the amount Mr. Arora paid from his savings and the amount he borrowed from the bank. The problem states that Mr. Arora used ₹ 75,000 from his savings and took a loan of ₹ 68,790 from the bank. The total cost of the car will be the sum of these two amounts. This type of problem falls under basic addition and is a fundamental concept in arithmetic. By understanding how to solve this problem, you'll gain a better grasp of how to calculate costs in real-world scenarios. This involves recognizing the different components that make up the final price and combining them accurately. It's a valuable skill that extends beyond just car purchases and applies to various financial situations.
Breaking Down the Information
To effectively solve this mathematical problem, let's break down the given information into smaller, more manageable parts. We know that Mr. Arora made two payments for the car: a payment from his savings and a loan from the bank. The first payment, from his savings, is ₹ 75,000. This represents the portion of the car's cost that Mr. Arora paid upfront using his own funds. The second payment is a loan from the bank amounting to ₹ 68,790. This loan covers the remaining cost of the car that Mr. Arora couldn't pay directly from his savings. By identifying these two components – the savings payment and the loan amount – we can clearly see the two financial sources Mr. Arora utilized to purchase the car. This breakdown is crucial because it sets the stage for the next step: combining these two amounts to find the total cost. Understanding how to dissect a problem into its constituent parts is a powerful problem-solving strategy, not just in mathematics but in many other areas of life as well.
The Calculation: Finding the Total Cost
Now that we have clearly identified the two amounts Mr. Arora used to pay for the car – ₹ 75,000 from his savings and ₹ 68,790 from a bank loan – we can proceed with the calculation. The total cost of the car is simply the sum of these two amounts. This involves a basic addition operation. We need to add ₹ 75,000 and ₹ 68,790 together. When performing addition, it's important to align the numbers correctly according to their place values (ones, tens, hundreds, etc.) to avoid errors. The calculation can be written as: ₹ 75,000 + ₹ 68,790. Performing this addition will give us the total cost of the car. This step highlights the direct application of arithmetic to solve real-world problems. Being able to perform addition accurately and efficiently is a fundamental mathematical skill that is essential for everyday financial calculations.
Step-by-Step Solution
To arrive at the solution, we will perform the addition step-by-step, ensuring accuracy in our calculation. Let's add the two amounts: ₹ 75,000 and ₹ 68,790.
- Align the numbers by place value:
75000
+ 68790
------
- Start adding from the rightmost column (ones place): 0 + 0 = 0
75000
+ 68790
------
0
- Move to the next column (tens place): 0 + 9 = 9
75000
+ 68790
------
90
- Next, the hundreds place: 0 + 7 = 7
75000
+ 68790
------
790
- Then, the thousands place: 5 + 8 = 13. Write down 3 and carry over 1 to the ten-thousands place.
1
75000
+ 68790
------
3790
- Finally, the ten-thousands place: 1 (carried over) + 7 + 6 = 14. Write down 14.
1
75000
+ 68790
------
143790
Therefore, the sum is ₹ 143,790.
The Answer and Its Significance
After performing the addition, we arrive at the answer: The total cost of the car Mr. Arora bought was ₹ 143,790. This answer represents the overall financial investment Mr. Arora made in the car. It's a crucial figure for Mr. Arora to know as it reflects the total amount he has committed to this purchase. Understanding the total cost allows Mr. Arora to properly budget for the car, including factoring in the loan repayment amounts. Moreover, this calculation demonstrates the importance of combining different financial sources – savings and loans – to make a significant purchase. The ability to accurately calculate the total cost is a fundamental aspect of financial literacy. It empowers individuals to make informed decisions about their spending and borrowing, ensuring they have a clear understanding of their financial obligations. This simple problem underscores the practical application of mathematics in everyday life, particularly in managing personal finances.
Real-World Applications and Implications
This problem, while simple, highlights the real-world applications of basic arithmetic in financial planning. Calculating the total cost of an item when using a combination of savings and loans is a common scenario. Whether it's buying a car, a house, or even smaller items using credit, understanding how to calculate the total expense is crucial for responsible financial management. The implications of this calculation extend beyond just knowing the price. It also involves budgeting for loan repayments, considering interest rates, and making informed decisions about affordability. For instance, knowing the total cost of the car helps Mr. Arora plan his monthly expenses to ensure he can comfortably repay the loan. Furthermore, this type of calculation can be applied to various scenarios, such as calculating the cost of a home with a mortgage, the total expense of a vacation using savings and credit, or even the cost of education with student loans. The underlying principle remains the same: adding the different components of the payment to arrive at the total cost. Mastering these basic mathematical skills empowers individuals to make sound financial decisions and avoid overspending or accumulating unsustainable debt.
Key Takeaways and Learning Points
This problem provides several key takeaways and learning points related to mathematics and financial literacy. Firstly, it reinforces the importance of basic addition skills in everyday life. Accurately adding different amounts is essential for calculating costs, managing budgets, and making financial decisions. Secondly, the problem highlights the significance of breaking down complex problems into smaller, more manageable parts. By identifying the two payment components – savings and loan – we were able to easily determine the total cost. This problem-solving strategy is applicable to various mathematical challenges and real-world situations. Thirdly, the exercise underscores the connection between mathematics and financial literacy. Understanding how to calculate total costs, loan amounts, and repayment schedules is crucial for making informed financial decisions. This includes budgeting, saving, and responsibly using credit. Finally, this problem serves as a practical example of how mathematical concepts are used in real-world scenarios, making learning more engaging and relevant. By understanding the real-world applications of mathematics, individuals can appreciate its importance and develop a greater aptitude for problem-solving. This foundational understanding is crucial for building financial stability and achieving long-term financial goals.
Practice Problems and Further Exploration
To further solidify your understanding of this concept, let's consider some practice problems and areas for further exploration. Imagine another scenario: Ms. Sharma wants to buy a new refrigerator. She pays ₹ 20,000 from her savings and takes a loan of ₹ 15,500 from a finance company. What is the total cost of the refrigerator? Try solving this problem using the same method we applied to Mr. Arora's car purchase. This will help you practice breaking down the problem and applying the addition operation. Another avenue for exploration is to consider the impact of interest rates on loans. How would the total cost change if Mr. Arora had to pay interest on the bank loan? This introduces a more complex element but is crucial for understanding the true cost of borrowing money. You can also explore online calculators and resources that help with loan calculations and financial planning. Understanding the concepts of interest, principal, and repayment schedules will provide a more comprehensive view of financial decision-making. By practicing these problems and exploring related topics, you can enhance your mathematical skills and financial literacy.
Conclusion: The Importance of Mathematical Literacy
In conclusion, Mr. Arora's car purchase problem serves as a valuable illustration of how basic mathematical skills are essential in everyday financial situations. By understanding how to calculate the total cost of a purchase involving both savings and loans, we gain a better grasp of financial management. The ability to break down problems, perform accurate calculations, and interpret the results is crucial for making informed decisions. This exercise underscores the broader importance of mathematical literacy in our lives. Whether it's managing personal finances, planning a budget, or understanding financial products and services, a solid foundation in mathematics empowers us to navigate the complexities of the modern world. By developing and honing these skills, we can make sound financial choices, achieve our financial goals, and secure our financial future. The simple problem of calculating the cost of a car highlights the far-reaching impact of mathematical literacy on our lives and underscores its importance in education and personal development. Strong mathematical skills truly empower individuals to make informed financial decisions.