Question:medium

A Ltd purchased a machine on Hire Purchase system from B Ltd. The cash price of the machine is ₹74,500 and Hire Vendor charges interest at 5% p.a. The amount of interest payable by A Ltd to B Ltd on December 31, 2024 is:

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Logic Tip: In Hire Purchase questions, interest is generally calculated on outstanding cash price using simple interest formula.
Updated On: May 29, 2026
  • ₹3,725
  • ₹4,000
  • ₹2,725
  • ₹1,861
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The Correct Option is A

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