A sofa of MRP 2500 is available in Rs.500 cash down payment and 9 monthly equal installment of Rs.250 each. Find the rate of interest per annum.
Total interest = 500 + 250 x 9 – 500 = Rs. 250 250 = (2000 + 1750 + 1500 + 1250 + 1000 +…. + 250) x R x 1/ (12 x 100) 250 = 9000 x R/1200 100 = 3R R = 100/3 %
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