A mobile worth Rs. 500 can be bought by paying a down payment of Rs.100 and 8 equal installments of Rs. 50 each. Calculate the rate of interest.

• Cost Price = 500
  First Payment = Rs.100
  Net Cost Price to be paid =Rs.400 = 8* (50)
  Therefore Rate Of Interest = 0%
• 5 years agoHelpfull: Yes(1) No(1)
• As it has to be paid in 8 equal installments, the payment on principal to be made will end on the completion of 8 months. He will have to pay (400/8=Rs.50 per month)
  Principal for the first month will be 400, for second month=350, for third month=300 and so on.
  Total sum or principal=400+350+300+250+200+150+100+50=1800.
  Amount= Principal + interest= 400+50=450 (for one month)
  Rate = 100* interest/ principal * time
  Rate= (100*50)/(1800*1/12)=100/3 %
• 4 years agoHelpfull: Yes(0) No(0)