Question

A chair is sold for cash price is Rs 450 or a cash down payment of Rs 210 and two equal monthly instalment of Rs125 each . Find out the rate of interest charged scheme?​

Answer 1

Answer: I think its 105 Rs

Step-by-step explanation:

Answer 2

ANSWER

Let r% p.a. be the rate under installment scheme. After Rs 600 cash is paid, Rs 1200 remained to be paid.

This becomes Rs 1,220. Total interest paid is Rs 20.

Now Rs 1,200 is kept for one month and Rs 600 is kept for one month.

⇒ Rs 600 is kept for 3 months at r% and interest paid is Rs 20.

$\therefore 20 = 600 \times \frac{3}{12} \times \frac{r}{100}$

$= > r = \frac{40}{3} = 13.33\%$