Question

The cost of a motor bike is Rs. 48,000. The company offers it in 30 months of equal installments at 10% rate of interest. Find the equated monthly installment.

Answer 1

Given : $P=48,000$ Rs., $R=10\%$

Number of installments$\left(N\right)=30$

Monthly installments $I=\frac{P(2nR+2400)}{N(2400+(n-1\left)R\right)}$

$=\frac{48000(2\times 30\times 10+2400)}{30(2400+29\times 10)}$

$=\frac{48000(600+2400)}{30(2400+290)}$

$=\frac{480000}{269}=1784.38$

Hence, the monthly installment is Rs. $1,784.38$.