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.

In Solving this question


Cash price of washing machine = Rs. 135000

Cash down payment = Rs. 6500

Balance due = Rs(13500 – 6500) = rs. 7000

No. of equal instalments = 3

Amountof each instalment =rs. 2500

Amount paid in installment = Rs. 7500

Therefore, interest paid in installment scheme = rs(7500-7000) = rs. 500



Principal for the 1stmonth = Rs. 7000



Principal for the 2ndmonth = Rs. 4500



Principal for the 3rdmonth = Rs. 2000

Total = Rs. 13500

Let the rate of interest be r% per annum



I = p*r*1 / 1200

Then, I = 13500*r*1 / 100*12

=> 500 =13500*r*1 / 100*12



=>r = 500*12/ 135

=>r = 44.4 %

Why We Have Taken The Time As One Month

Answer 1

you already answer the question ...

Answer 2

Answer: READ THE QUESTION CAREFULLY!

Its already mentioned that three MONTHLY installments. therefore we are taking time as 1 month.

All the best!

Remember while solving you got to read the question very carefully.

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