Question

Anil purchased a typewriter priced at Re. 8000 cash payment under the instalment plan by making a cash payment of Rs. 3200 and 5 equal monthly installments of Rs. 1000 each find the rate of interest charged under the instalment plan

Answer 1

the total amount paid by anil is rs 3200 cash and rs 1000 each month for 5 months

=3200+5×1000

=3200+5000

8200

so the total interest paid is 200

and monthly interest is 200÷5

=40

rate of interest

=40/100

0.4%