Question

A watch is sold for rs.440 cash or for rs.200 cash down payment together with rs.244 to be paid after one month. find the rate of interest charged in the installment scheme.

Answer 1

4 rs /month
hope it helpyou

Answer 2

Answer:

The rate of interest charged in the installment scheme is 20% per annum.

Step-by-step explanation:

Consider the provided information,

A watch is sold for rs.440 cash if we pay 200 cash down payment then the principal for the next month is = 440 - 200 = 240  

We need to pay 244 after 1 month.

Therefore, interest charged at Rs.240 =  244 - 240 = 4.

Now use the formula of simple interest:

$S.I = \frac{PRT}{100}$

Substitute P = 240, S.I = 4, T = 1/12 (For one month) in above formula.

$4 = \frac{240R}{12\times100}$

$4 = \frac{R}{5}$

$4 \times 5= R$

$R=20$

Hence, the rate of interest charged in the installment scheme is 20% per annum.