A television costs ₹45,000. The buyer pays ₹9,000 down and the rest in 18 monthly instalments at a flat rate of 10% a year. What is each instalment?

Explanation

1. 01

   The loan is $45{,}000 - 9{,}000 = 36{,}000$; interest for 1.5 years is $36{,}000 \times 0.1 \times 1.5 = 5{,}400$.

2. 02

   Instalment $= \frac{41{,}400}{18} = 2{,}300$ rupees.