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

hmmm think about it!

  • -6

Sorry Prakhar, I don't know the answer to your question but came to say you All the Best for Science Olympiad.. Do well :-) 

  • -8

 thanx a lot

  • -7

:-) Welcome :-)

  • -8
we have taken the time as 1 becoz it is given in the problem that the 3 instalments are paid in 3 consecutive months. that is 1 instalment in one month 
 
  • 1
THINK YOUR SELF
  • 0
What are you looking for?