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Cash Price = 30000 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 ×1)/100 Interest of Third year = (7000 × r ×1 )/100 Now, according to the question (23000 × r ×1 )/100+ (15000 × r ×1)/100+ (7000 × r ×1 )/100=1000 (1000r (23+15+7))/100=1000 45r/100=1 r= 100/45 = 2 2/9%
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