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 A washing machine is available at Rs 6400 cash or for Rs 1400 cash down payment and 5 monthly installments of Rs 1030 each. Calculate the rate of interest charged under the instalment plan. [ Calculator, Method and examples ]Solution:Your problem -> A washing machine is available at Rs 6400 cash or for Rs 1400 cash down payment and 5 monthly installments of Rs 1030 each. Calculate the rate of interest charged under the instalment plan.Cash Price = 6400Down Payemnt = 1400No of Installment = 5Installment Amount = 1030Remaining Balance = 6400 - 1400 = 5000After 5 months Amount = 5000 + 5000 × 5 / 12 × R / 100 = 5000 + (25000 × R) / 1200  = 5000 + 125/6 × R ->(1)1^(st) Installment = 1030 + (1030 × R × 4) / (12 × 100)2^(nd) Installment = 1030 + (1030 × R × 3) / (12 × 100)3^(rd) Installment = 1030 + (1030 × R × 2) / (12 × 100)4^(th) Installment = 1030 + (1030 × R × 1) / (12 × 100)Total Installment = 1030 × 5 + (1030 × R × (4 + 3 + 2 + 1)) / (12 × 100) = 5150 + (1030 × R × (10)) / 1200 = 5150 + 103/12 × R ->(2)From (1) and (2) 5000 + 125/6 × R = 5150 + 103/12 × R125/6 × R - 103/12 × R = 5150 - 500049/4 × R = 150R = 600/49:. R = 600/492^(nd) MethodCash Price = 6400Down Payemnt = 1400No of Installment = 5Installment Amount = 1030Remaining Balance = 6400 - 1400 = 5000Total Installment = 1030 × 5 = 5150Interest = 5150 - 5000 = 150 ->(1)Principal for 1^(st) month = 5000Principal for 2^(nd) month = 3970Principal for 3^(rd) month = 2940Principal for 4^(th) month = 1910Principal for 5^(th) month = 880Total = 14700:. Installment = (14700 × R × 1) / (100 × 12) ->(2)From (1) and (2)(14700 × R × 1) / (100 × 12) = 150R = (150 × 100 × 12) / 14700R = 600/49

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