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 A bicycle is sold for Rs 1800 cash or for Rs 600 cash down payment followed by 2 monthly installmnets of Rs 610 each. Compute the rate of the interest charged under the installment scheme. [ Calculator, Method and examples ]Solution:Your problem -> A bicycle is sold for Rs 1800 cash or for Rs 600 cash down payment followed by 2 monthly installmnets of Rs 610 each. Compute the rate of the interest charged under the installment scheme.Cash Price = 1800Down Payemnt = 600No of Installment = 2Installment Amount = 610Remaining Balance = 1800 - 600 = 1200After 2 months Amount = 1200 + 1200 × 2 / 12 × R / 100 = 1200 + (2400 × R) / 1200  = 1200 + 2 × R ->(1)1^(st) Installment = 610 + (610 × R × 1) / (12 × 100)Total Installment = 610 × 2 + (610 × R × (1)) / (12 × 100) = 1220 + (610 × R × (1)) / 1200 = 1220 + 61/120 × R ->(2)From (1) and (2) 1200 + 2 × R = 1220 + 61/120 × R2 × R - 61/120 × R = 1220 - 1200179/120 × R = 20R = 2400/179:. R = 2400/1792^(nd) MethodCash Price = 1800Down Payemnt = 600No of Installment = 2Installment Amount = 610Remaining Balance = 1800 - 600 = 1200Total Installment = 610 × 2 = 1220Interest = 1220 - 1200 = 20 ->(1)Principal for 1^(st) month = 1200Principal for 2^(nd) month = 590Total = 1790:. Installment = (1790 × R × 1) / (100 × 12) ->(2)From (1) and (2)(1790 × R × 1) / (100 × 12) = 20R = (20 × 100 × 12) / 1790R = 2400/179

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