Question

A table is sold for ` 2000 cash or for ` 600 as cash down payment, followed by` 1500 paid after 2 months. Find the rate of interest charged under the instalment plan.

Answer 1

Cash Price = 2000 (Given)

Instalment Price = 600 + 1500 x 2 = 3600

Find interest for 2 months:

interest = 3600 - 2000 = 1600

Find interest for a year:

2 months = 1600

1 years = 1600 x 6 = 9600

Find interest rate:

interest rate = 9600/2000 x 100 = 480%

Answer: The rate of interest for the instalment plan is 480%