If the cost of a mobile phone is Rs. 25,000, available at Rs. 5,000 down payment followed by 3 equal annual instalments (each instalment is to be paid at the end of each year) at the rate 25% p.a. compound interest, then find the value of each instalment (rounded off to two decimal places):

Solution (By Examveda Team)

Cash payment = 25000
Down payment = 5000
Remaining = 20000
Rate = 25% = $$\frac{1}{4}$$
\[\begin{array}{*{20}{c}} {100 = 4 \times 25}&{5 \times 25 = 125} \\ {80 = 16 \times 5}&{25 \times 5 = 125} \\ {64 = 64}&{125 - 125} \end{array}\]
244 unit → 20000
1 unit → 81.9672
Each installment
125 unit → 125 × 81.9672 = 10245.90 Answer