Multiple choice general knowledge math & puzzles

A buys a washing machine costing Rs.6000 on instalment basis. He pays Rs. 3000 cash at the time of delivery and subsequently 2 monthly instalments of Rs. 1575 each. The rate of interest charged p.a. is

  1. 0.39

  2. 0.32

  3. 0.28

  4. 0.3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount paid: 3000 + 2*1575 = Rs. 7150. Interest charged = 7150 - 6000 = Rs. 1150. Principal for interest calculation = Rs. 3000 (balance after down payment). Time = 2 months. Interest = P*r*t, where r is monthly rate. 1150 = 3000 * r * (2/12), so r = 1150 * 12 / (3000 * 2) = 2.3. Monthly rate = 2.3, annual rate = 2.3 * 12 = 27.6%, approximately 30%. The answer 0.3 represents 30% p.a.

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