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Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest?
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Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments...
Arun's Purchase and Calculation of Simple Interest
Arun has two payment options for purchasing a vacuum cleaner:
- **Option 1: Installment Purchase**
- Initial cost of the vacuum cleaner: **Rs 1700**
- Number of installments: **5**
- Amount of each installment: **Rs 480**
- Total amount paid through installments:
Calculation:
Total Installments = 5 * 480 = Rs 2400
- **Option 2: One-time Purchase**
- Cost of vacuum cleaner if bought outright: **Rs 3900**
Now, we can calculate the simple interest incurred in the installment purchase option.
Simple Interest Calculation
1. **Total Amount Paid through Installments:**
Rs 2400
2. **Difference from the One-time Purchase Price:**
Difference = Rs 2400 - Rs 1700 = Rs 700
3. **Principal Amount:**
Principal = Rs 1700
4. **Total Interest Paid:**
Simple Interest = Total Installments - Principal
Simple Interest = Rs 2400 - Rs 1700 = Rs 700
5. **Time Period:**
Time = 5 Installments (Assuming each installment is monthly)
6. **Calculating Rate of Interest:**
- Use the formula:
Simple Interest (SI) = (Principal * Rate * Time) / 100
- Rearranging gives:
Rate = (SI * 100) / (Principal * Time)
Rate = (700 * 100) / (1700 * 5) = 8.24%
Conclusion
In conclusion, by opting for the installment plan, Arun incurs a simple interest of **Rs 700**, with an effective rate of approximately **8.24%**. This highlights the cost implications of installment purchases compared to outright buying.
Arun has two payment options for purchasing a vacuum cleaner:
- **Option 1: Installment Purchase**
- Initial cost of the vacuum cleaner: **Rs 1700**
- Number of installments: **5**
- Amount of each installment: **Rs 480**
- Total amount paid through installments:
Calculation:
Total Installments = 5 * 480 = Rs 2400
- **Option 2: One-time Purchase**
- Cost of vacuum cleaner if bought outright: **Rs 3900**
Now, we can calculate the simple interest incurred in the installment purchase option.
Simple Interest Calculation
1. **Total Amount Paid through Installments:**
Rs 2400
2. **Difference from the One-time Purchase Price:**
Difference = Rs 2400 - Rs 1700 = Rs 700
3. **Principal Amount:**
Principal = Rs 1700
4. **Total Interest Paid:**
Simple Interest = Total Installments - Principal
Simple Interest = Rs 2400 - Rs 1700 = Rs 700
5. **Time Period:**
Time = 5 Installments (Assuming each installment is monthly)
6. **Calculating Rate of Interest:**
- Use the formula:
Simple Interest (SI) = (Principal * Rate * Time) / 100
- Rearranging gives:
Rate = (SI * 100) / (Principal * Time)
Rate = (700 * 100) / (1700 * 5) = 8.24%
Conclusion
In conclusion, by opting for the installment plan, Arun incurs a simple interest of **Rs 700**, with an effective rate of approximately **8.24%**. This highlights the cost implications of installment purchases compared to outright buying.
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Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest?
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Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest?.
Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Arun purchase a vacuum cleaner of a Rs 1700 followed by 5 installments of 480 each he can also buy at 3900 what is the simple interest?.
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