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A briefcase is available for Rs 800 cash or for Rs 500 cash down payment and Rs 320 to be paid after 6 months. Find the rate of interest charged under the installment plan. [ Calculator, Method and examples ]

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Your problem `->` A briefcase is available for Rs 800 cash or for Rs 500 cash down payment and Rs 320 to be paid after 6 months. Find the rate of interest charged under the installment plan.


Cash Price = `800`

Down Payemnt = `500`

Remaining Balance = `800 - 500 = 300`

The installment to be paid at the end of `6` months = `320`


`:.` the interest charged on Rs `300`, for a period of `6` months = Rs `320` - Rs `300 = 20`

If R % is the rate of interest per annum, then
`(300 × R × 6) / (100 × 12) = 20`


`R = 40/3`

Thus, the rate of interest charged under the installment paln is = `40/3` per annum






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