A digital note-pad is available for Rs. 25,000 cash or Rs. 2,500 down payment followed by 4 equal monthly instalments. If the rate of interest charged is 24% per annum simple interest, what is the monthly instalment (in ., rounded off to the nearest tens)?

Solution(By Examveda Team)

$$\eqalign{ & {\text{Cash amount}} = 25000 \cr & {\text{Down payment}} = 2500 \cr & {\text{Remaining amount}} = 22500 \cr & {\text{Rate}} = 24\% \,{\text{p}}{\text{.a}} \cr & {\text{12 month}} \to 24\% \cr & \to \frac{{24}}{{12}} \times 100 = \frac{1}{{50}} \cr & 4{\text{ month}} \to 8\% \cr & \Rightarrow {\text{Total amount}} = 22500 \times \frac{{108}}{{100}} \cr & = 24300 \cr} $$
\[\begin{array}{*{20}{c}} {50}& - &{50} \\ {50}& - &{51} \\ {50}& - &{52} \\ {50}& - &{\mathop {53}\limits_{\_\_\_\_\_\_} } \\ {}&{}&{206} \end{array}\]
$$\eqalign{ & {\text{EMI}} = \frac{{24300 \times 50}}{{206}} \cr & = 5898.05 \cr & = 5900 \cr} $$