a televison is available for rs.7500 cash or rs.3000 cash down pament followed by five equal monthly instalment of rs.1000.Find the rate of interest per annuam charged under the instalment plane?
Answers
Answered by
0
After paying the down payment, the remaining amount to be paid is :
7500-3000=4500
The 5 monthly installments are 1000 each.
So the total to be paid=1000×5=rs5000
We are to find out, at what interest rate 4500 should be accumulated in 5 months to get 5000
4500(1+i)^5/12=5000
(1+i)^5/12=1.1111
(1+i)=(1.111)^12/5
1+i=(1.111)^2.4
1+i=1.2874
i=0.2874
i=28.74%
7500-3000=4500
The 5 monthly installments are 1000 each.
So the total to be paid=1000×5=rs5000
We are to find out, at what interest rate 4500 should be accumulated in 5 months to get 5000
4500(1+i)^5/12=5000
(1+i)^5/12=1.1111
(1+i)=(1.111)^12/5
1+i=(1.111)^2.4
1+i=1.2874
i=0.2874
i=28.74%
Similar questions