Questions & Answers

Question

Answers

Answer
Verified

In this question, we are supposed to find the rate of interest for the washing machine bought at monthly instalments of Rs. 1500.

So, before proceeding for this , we must know the following formula for the value of rate of interest r when it is bought on monthly instalments where n is the number of months and I is the instalment value and E is the deduction of balance to be paid.

So, the formula for r will be as:

$r=\dfrac{2400E}{n\left[ \left( n+1 \right)I-2E \right]}$

Now, from the question it is given that cost price of the washing machine is Rs. 10200.

Then, it is also mentioned in the question the value of the down payment is Rs.2000.

So, the balance to be paid is given by:

10200-2000=8200

Now, each instalment value is Rs. 1500.

So, the total amount we pay in the instalments is as:

$1500\times 6=9000$

Now, the deduction value E from the above calculation is:

$\begin{align}

& E=9000-8200 \\

& \Rightarrow E=800 \\

\end{align}$

Now, the value of r from the above data is as:

$\begin{align}

& r=\dfrac{2400E}{n\left[ \left( n+1 \right)I-2E \right]} \\

& \Rightarrow r=\dfrac{2400\times 800}{6\left[ 7\times 1500-2\times 800 \right]} \\

& \Rightarrow r=\dfrac{2400\times 800}{6\left[ 10500-1600 \right]} \\

& \Rightarrow r=\dfrac{2400\times 800}{6\times 8900} \\

& \Rightarrow r=\dfrac{2400\times 8}{6\times 89} \\

& \Rightarrow r=35.95 \\

& \Rightarrow r\approx 36 \\

\end{align}$

So, the rate of interest is 36%.

Hence, the rate of interest is 36% for the instalments of washing machine.

$r=\dfrac{2400E}{n\left[ \left( n+1 \right)I-2E \right]}$

×

Sorry!, This page is not available for now to bookmark.