New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    A laptop charger is sold for Rs.2,540 in cash or for a

    down payment of Rs.1,340 in cash together with Rs.1,205 to be paid after one month. Find the rate of interest charged in the installment scheme.
    A 20% Correct Answer Incorrect Answer
    B 15% Correct Answer Incorrect Answer
    C 5% Correct Answer Incorrect Answer
    D 25% Correct Answer Incorrect Answer

    Solution

    The laptop charger costs Rs. 2,540 in cash. The installment option requires a down payment of Rs. 1,340 and a second payment of Rs. 1,205 after one month. The extra amount paid is Rs. 5 (Rs. 1,205 - Rs. 1,200). Simple Interest (SI) = Rs. 5  Principal (P) =2540-1340 = Rs. 1,200  Time (T) = 1/12 years Using the formula SI = PXRXT /100 we get: 5 = (1,200×R×1)/ 12×100 R = 5%

    Practice Next

    Relevant for Exams: