Answer:
₹1400
Step-by-step explanation:
You want to know the monthly installment when a refrigerator costing ₹34500 is paid for with ₹6500 down and 24 payments that include 10% simple interest.
Balance to be paid
The amount remaining after the ₹6500 down payment is ...
₹34500 -6500 = ₹28000
The amount to be repaid in installments will be this amount with 2 years' finance charge:
₹28000 × (1 +rt) = ₹28000 × (1 +0.10·2) = ₹28000×1.20
= ₹33600
Installments
When that is divided into 24 equal payments, each monthly installment is ...
₹33600/24 = ₹1400
Each monthly installment is ₹1400.
