A Bicycle Can Be Purchased On A Cash Payment Of Rs 1500 The Same Bicycle Can Also Be Purchased - Maths - Comparing Quantities

Question

A Bicycle Can Be Purchased On A Cash Payment Of Rs 1500 The Same
Bicycle Can Also Be Purchased At The Down Payment(initial payment
at the time of purchasing) Of Rs 350 And Rest Can Be Paid In 3
Equal Installments Of Rs 400 For Next 3 Months Find The Rate Of SI
Charged By The Dealer

Mayank Bhardwaj · Accepted Answer

Cost price of bicycle or principal (P) = Rs 1500

Cost price of bicycle with installments procedure = Rs (350 + 3 × 400) = Rs 1550

Interest (I) = Rs 1550 - Rs 1500 = Rs 50

Total number of months = 4

T = $\frac{4}{12} y e a r s$

Let the rate br R% per annum.

$S I = \frac{P R T}{100} \Rightarrow 50 = \frac{1500 \times R \times 4}{100 \times 12} \Rightarrow 50 = 5 R \Rightarrow R = 10 % p e r a n n u m$

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A Bicycle Can Be Purchased On A Cash Payment Of Rs 1500. The Same Bicycle Can Also Be Purchased At The Down Payment(initial payment at the time of purchasing) Of Rs 350 And Rest Can Be Paid In 3 Equal Installments Of Rs 400 For Next 3 Months.Find The Rate Of SI Charged By The Dealer