Question

A technologically adept bed has a selling price of Rs 15,600 or Rs 5000 at a down payment in cash with the installment of Rs 11130 after two months. Find out the rate of interest charged under this installment plan.

1. 15%
2. 30%
3. 20%
4. 10%

Answer 1

Correct Answer - Option 2 : 30%

Given:

 S.P. = Rs 15,600

Down payment = Rs 5000

Monthly installments = Rs 11130

Formula used:

I = PRT/ 100

Calculation:

S.P. = Rs 15,600

⇒ Effective P = 15600 – 5000

⇒ P = 10600

⇒ Interest I = 11130– 10600

⇒ I = 530

⇒ 530 = 10600 × R × 2/ (100 × 12)

⇒ R = 600/ 20

⇒ R = 30%

∴ required percentage is 30%