A suit is available for Rs. 1500 cash or for Rs. 500 cash down payment followed by 3 monthly insta

M4maths Previous Puzzles

07 Oct 2010 Rate Of intrest

A suit is available for Rs. 1500 cash or for Rs. 500 cash down payment followed by 3 monthly installments of
Rs. 345 each. Find the rate of interest charged under the installment scheme.

OPtion

1) 24.76
2) 19.67
3) 37.23
4) 21
5) 21.31
6) 78.65
7) 22.73
8) 13.1
9) 12.31
10) 23.9

Solution

Cash Price = 1500
Price under Installment Plan = 500 + 1035 = 1535
Interest Charged = Rs. 35
Principal for each month = 1000 + 655 + 310
∴ Total Principal = Rs. 1965
Rate = (35 * 100 * 12)/(1965 * 1)=2800/131 = 21.31% approx

Correct Option: 5 Best Solution (1)