A laptop is sold for Rs. 1680 cash or for Rs. 1400 cash down payment together with Rs. 287 to be paid after one month. Find the rate of simple interest charged per annum.
1. 2.5%
2. 3.5%
3. 15%
4. 30%
5. None of these.
A laptop is sold for Rs. 1680 cash or for Rs. 1400 cash down payment together with Rs. 287 to be paid after one month. Find the rate of simple interest charged per annum.
1. 2.5%
2. 3.5%
3. 15%
4. 30%
5. None of these.
1. 2.5%
2. 3.5%
3. 15%
4. 30%
5. None of these.
Correct Answer – Option 4 : 30%
Given:
Actual price = Rs. 1680
Down payment = Rs. 400
Formula used:
Simple Interest = PRT/100
Calculation:
Total amount = Rs. (1400 + 287) = Rs. 1687
Interest paid = Rs. (1687 – 1680)
⇒ Rs. 7
Interest will be applied on = Rs. (1680 – 1400) = Rs. 280
Simple Interest = PRT/100
⇒ 7 = (280 × R × 1)/100
⇒ R = 700/280
⇒ R = 2.5% per month
⇒ R = 2.5 × 12
⇒ R = 30% per annum
∴ Rate of simple interest charged is 30% per annum.