A loan of ₹60,000 is repaid in 24 monthly instalments of ₹3,000 each. What flat rate of interest a year is being charged?

Explanation

1. 01

   Repaid in all: $24 \times 3{,}000 = 72{,}000$, so the interest is 12,000 over 2 years.

2. 02

   Rate $= \frac{12{,}000}{60{,}000 \times 2} = 10\%$ a year.