Question

A television set is sold for Rs. 9000 cash on Rs. 1000 cash down followed by six equal instalments of Rs. 1500 each. What is the rate of interest ?

Answer 1

$n=6$

$I=Rs.1500$

$E=[1000+6\times 1500-9000]=Rs.1000$

$R=\frac{2400E}{n\left[\right(n+1)I-2E]}=\frac{2400\times 1000}{6\left[\right(6+1)1500-2000}=47.1$ %