Question

A washing machine is available for Rs. 13,500 cash or Rs. 6,500 as cash down
payment followed by three monthly instalments of Rs. 2,500 each. Find the rate of interest charged under instalment plan.

Answer 1

Answer:

3.57 %

Step-by-step explanation:

Total Amount To Be Paid = 6500 + 3(2500) = 14000

Extra Amount = 14000 - 13500 = 500

Interest Rate = 500/13500 * 100 = 3.57 %

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.

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

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