Question

A bicycle can be purchased for Rs. 800. A customer can purchase it in 12 monthly instalments of Rs. 80. What is rate of interest?

• A. 18%
• B. 22%
• C. 20%
• D. 15%

Answer 1

Answer:

C. 20%

Total installments in one year = 12 x 80 = Rs. 960 Simple Interest = 960 - 800 = Rs. 160 R= 100I / PN =100 x 160/800 x 1 =20%