A washing machine is available for 13,500 cash or 6,500 cash downpayme

1.	A washing machine is available for 13,500 cash or 6,500 cash downpayment followed by three monthly instalments of 2,500 each. Find therate of interest per annum charged under this instalment plan.
Answer» Cost of machine CP = 13500 If machine bought using installment plan, then machine will cost = 6500 + 32500= 6500 + 7500= 14000 Let rate of interest on installment plan be R Thus,14000 - 13500 = 13500R1/100 500 = 135R R = 500/135 = 3.7 %

A washing machine is available for 13,500 cash or 6,500 cash downpayment followed by three monthly instalments of 2,500 each. Find therate of interest per annum charged under this instalment plan.

Answer»

Cost of machine CP = 13500

If machine bought using installment plan, then machine will cost = 6500 + 3*2500= 6500 + 7500= 14000

Let rate of interest on installment plan be R

Thus,14000 - 13500 = 13500*R*1/100

500 = 135*R

R = 500/135 = 3.7 %