An old article is available for ₹ 12,000 at cash payment

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An old article is available for ₹ 12,000 at cash payment or is available for ₹ 7,000 cash payment and a monthly instalment of ₹630 for 8 months. The rate per cent per annum is

1. 2.1 per cent
2. 3 per cent
3. 3.25 per cent
4. 3.3 per cent

Correct Option: A

As per the given in question , we have
Simple Interest = (7000 + 630 × 8) – 12000
Simple Interest = (7000 + 5040) – 12000
Simple Interest = 12040 – 12000 = 40
Total Principal = 5000 + 4370 + 3740 + 3110 + 2480 + 1850 + 1220 + 590 = ₹ 22360

Rate =	40 × 100 ×12	≈ 2.1%
	22360 × 1