Question

A television is available rs.7500 cash or rs.3000 cash down payment followed by five equal monthly nstalments of Rs. 1000 each. Find the rate of interest per annum charged under the instalment plan.

Answer 1

nice question........................

Answer 2

Amount to be paid= down payment+installments
                               =3000+5x1000
                               =8000rs

∴ interest = 8000-7500
                 =500 rs
Given outstanding amount = 7500-3000
                                              = 4500rs

∴      500 = [4500x(5/12)xR]/100 ∵ SI = PTR/100

         1500x12  = 45x5xR

                    R = 80/3
            
                       =26.66%