A phone costs ₹30,000. The buyer pays ₹6,000 down and the rest in 12 monthly instalments at a flat rate of 8% a year. What is each instalment?

Explanation

1. 01

   The loan is $30{,}000 - 6{,}000 = 24{,}000$, and its interest for a year is $24{,}000 \times 0.08 = 1{,}920$.

2. 02

   EMI $= \frac{24{,}000 + 1{,}920}{12} = 2{,}160$ rupees.