Example 4. A.T.V can be purchased for Rs. 24000 cash or for Rs. 8000 cash down payment and six equal monthly instalment of Rs. 2800 each. Calculate the rate of interest charged under the instalment plan.
Solution:-
Cash price = Rs. 24000
Cash down payment = Rs. 8000
Balance to be paid in instalment = Rs. 24000 - Rs. 8000
= Rs. 16000
Let rate of interest be r% p.a.
At the end of 6 month, Rs.16000 will be amount to
At the end of 6 month, first instalment of Rs. 2800 will amount to
Second instalment of Rs.2800 will amount to
Third instalment of Rs.2800 will amount to
Fourth instalment of Rs.2800 will amount to
Fifth instalment of Rs.2800 will amount to
At the end of six months, all the six instalment will amount to
From (1) and (2) we get
Hence rate of interest charged is 17.78%
| Subjects | Maths (Part-1) by Mr. M. P. Keshari |
| Chapter 1 | Linear Equations in Two Variables |
| Chapter 2 | HCF and LCM |
| Chapter 3 | Rational Expression |
| Chapter 4 | Quadratic Equations |
| Chapter 5 | Arithmetic Progressions |
| Chapter 6 | Instalments |
| Chapter 7 | Income Tax |
| Chapter 8 | Similar Triangles |
