ABHINAV PURCHASED A TRACKSUIT FOR Rs 2400 CASH OR FOR Rs 1000 CASH DOWN PAYMENTS AND TWO MONTHLY INSTALLMENTS OF Rs 800 EACH . THE RATE OF INTEREST WILL BE ----?. PLEASE EXPLAIN
Answers
Answer:
Step-by-step explanation:
Selling price = 2400; For cash;
If abhinav purchase this on EMI basis he have to pay 1000 + 800 + 800 = 2800; Total amount;
Extra amount he have to pay when he choose the EMI option is = 2800-2400 = 400;
Selling price = 2400;
Extra amount = 400;
Time = 2 months;
Simple interest formula on the basis of monthly interest rate (R) is = PR(T/12)/100;
Answer:
Simple interest
r = 85.7% per annum
7.15 % per month
Compound Interest
r = 9.38 % per month
r = 112.6 % per annum
Step-by-step explanation:
ABHINAV PURCHASED A TRACKSUIT FOR Rs 2400 CASH OR FOR Rs 1000 CASH DOWN PAYMENTS AND TWO MONTHLY INSTALLMENTS OF Rs 800 EACH . THE RATE OF INTEREST WILL BE ----?. PLEASE EXPLAIN
Cost Price at down payment = Rs 2400
if he made Rs 1000 down payment then remaining payment = 2400 - 1000
= Rs 1400
He will make payment of Rs 800 + 800 = Rs 1600 more
Interest paid = Rs 1600 - Rs 1400 = Rs 200
Interest paid on Amount Rs 1400
Rs 200 interest paid on Rs 1400 in two months
Simple interest Rate = r % per annum
200 = 1400 * r * (2/12)/100
=> r = 600/7
=> r = 85.7% per annum
7.15 % per month
if Compound interest r % per month
Then interest for 1st month
= 1400 * r * 1/100 =
= 14r
in 1st installment Principle paid = 800 - 14r & interest paid = 14r
remaining principle = 1400 - (800 - 14r) = 600 + 14r
Interest paid in second installment = (600 +14r) ) * r * 1/100
= 6r + 0.14r²
total interset paid in 2 months = Rs 200
14r + 6r + 0.14r² = 200
0.14r² + 20r - 200 = 0
7r² + 1000r - 10000 = 0
r = (- 1000 + √(1000000 + 280000) )/14
r = 9.38 % per month
r = 112.6 % per annum