Question

A television set is sold for Rs. $10000$ cash on Rs. $2000$ cash down followed by six equal instalments of Rs. $1600$ each. What is the rate of interest?

• A. $50\%$
• B. $60\%$
• C. $70\%$
• D. $80\%$

Answer 1

The correct option is B $60\%$

Given, $n=6,I=$ Rs. $1600$,

$E=2000+6\times 1600-10000=$ Rs. $1600$
We know $R=\frac{2400E}{n(n+1)I-2E}$
$\Rightarrow R=\frac{2400\times 1600}{6(6+1)1600-2\times 1600}$
$\Rightarrow R=60\%$

Thus, the rate of interest is $60\%$.