This topic contains 1 reply, has 2 voices, and was last updated by  Sairaj 6 months ago.

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EduGorilla
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Vivek purchased a bike costing Rs. 51,250 under finance with a down payment (which has to be paid at the beginning) of Rs. 10,000. Next month onwards, he has to pay Rs. 1,300 every month up to 36 months to clear the remaining payment. What is the rate of interest under simple interest?

Options :-

1. 8%
2. 10%
3. 11%
4. 12%
5. 15%
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Sairaj
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He has to pay Rs. 51,250 – 10,000 = Rs. 41,250 more
One month equivalent sum = 41,250 + 39,950 + 38,650 + … 36 terms
= 18(82,500 – 45,500) …… (Sum of n terms in A.P)
= Rs. 6,66,000
As this sum of 41,250 is to be paid in 36 installments of Rs. 1,300, so
Total interest = 36 × 1,300 – 41,250 = Rs. 5,550

Therefore, 5550 = 666000 * 1* R/12*100

R = 10%

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