Question
A clock is sold for Rs.550 cash or in the instalment
scheme, for Rs.250 cash down payment and Rs.310 after one month. Find the rate of interest charged in the instalment scheme.Solution
A clock costs Rs. 550 in cash. In the instalment scheme, it requires a down payment of Rs. 250 and Rs. 310 after one month. The extra amount paid is Rs. 10 (Rs. 310 Rs. 300). Simple Interest (SI) = Rs. 10 Principal (P) = 550-250 =Rs. 300 Time (T) = 1/12 years Using the formula SI =(PXRXT)/ 100 10 = (300×R× 1)/12×100 R = 40%
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