Question

A table is sold for Rs.2000 cash or Rs.500 as cash payment followed by 4 equal monthly
instalments of Rs.400 each. Find the rate of interest charged under the instalment plan.
​

Answer 1

Answer:

8000

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.

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

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