Sonia buys a shop for $Rs. 1,20,000$. She pays half the amount in cash and agrees to pay the balance in $12$ annual installments of $Rs. 5000$ each. If the rate of interest is $12 \%$ and she pays with the installment due on the unpaid amount, find the total cost of the shop.

Question

$\begin{array}{1 1} Rs.1,66,800 \\ Rs.1,65,000 \\ Rs.2,66,000 \\ Rs.1,70,800\end{array}$