Question

A sonata watch is sold for rs. 440 cash or for rs. 200 cash down payment together with rs. 244 to be paid after one month. Find the rate of interest charged in the instalment scheme.

Answer 1

Answer:

20%

Step-by-step explanation:

Down payment = Rs. 200

Remaining payment = Rs. 440 - Rs. 200  

                                 = Rs. 240

The installment paid at the end of one month = Rs. 244.

So, Interest was charged on Rs. 240, for a period of one month :

$= Rs. 244 - Rs. 240\\ = Rs. 4$

Let rate of interest be R% p.a.

12 months = 1 year

So, 1 month = $\frac{1}{12}year$

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

P = Rs.240

SI = Rs.4

T= $\frac{1}{12}year$

Substitute the values

$\frac{240 \times R \times \frac{1}{12} }{100}=4$

$R=\frac{100 \times 4}{240\times \frac{1}{12}}$

$R=20\%$

Hence The rate of interest charged in the installment scheme is 20%