Question

A Motorbike can be purchased on cash payment of Rs.

Q: Answer-A Motorbike can be purchased on cash payment of Rs. 30000. But the same Motorbike can also be purcha...

Cash Price30000 Less Cash Down Payment 7000 Balance 23000 First Installment 8000 Balance 15000 Second Installment 8000 Balance 7000 Third Installment 8000 Balance 1000 Now Interest on First year 23000 r 1 100 Interest on Second year 15000 r 1100 Interest of Third year 7000 r 1 100 Now, according to the question 23000 r 1 100 15000 r 1100 7000 r 1 1001000 1000r 231571001000 45r1001 r 10045229

30000. But the same Motorbike can also be purchased on the cash down payment of Rs 7000 and the rest can be paid in three equal annual installments of Rs. 8000 for next three years. Find the rate of simple interest?

A 5%

B 2(1/2)%

C 2(2/9)%

D 4(1/2)%

E 5(1/2)%

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