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 installment plan
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5
15% intrest was charged for rs 7000
and they take 2500*3 =7500
means 500 extra in 3 months
*correct me if i m wrong
and they take 2500*3 =7500
means 500 extra in 3 months
*correct me if i m wrong
Answered by
7
Under the installment plan the cost of the machine will be :
The total monthly installments = 2500 × 3 = 7500
Down payment = 6500
Total cost = 6500 + 7500 = 14000
The installment payment is more by :
14000 - 13500 = 500
The interest charged is thus 500.
The rate is thus :
500/13500 × 100% = 3.70%
For the three months.
The interest for the 3 months is thus 3.70%
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