An item is available for ₹1,600 cash or for ₹700 cash down payment, followed by three monthly instalments of ₹310 each. The rate of interes…

Explanation

Balance after the down payment = 1600 − 700 = ₹900. The instalments total 930, so interest = ₹30. Outstanding balance by month: 900, 590 and 280, which totals 1770 rupee-months. Rate per month = 30/1770, so the annual rate = 30/1770 × 12 ≈ 20.3%.