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We are given the following information:

- Total price of the mobile phone = ₹25,000
- Down payment = ₹5,200
- The remaining amount will be paid in 4 equal monthly installments.
- Interest rate = 25% per annum (simple interest).

### Step 1: Calculate the loan amount
The loan amount will be the total price minus the down payment:

\[
\text{Loan Amount} = ₹25,000 - ₹5,200 = ₹19,800
\]

### Step 2: Determine the interest
Since the interest is simple interest, we use the formula:

\[
\text{Simple Interest} (SI) = \frac{P \times R \times T}{100}
\]

Where:
- \(P\) is the principal (loan amount) = ₹19,800,
- \(R\) is the annual interest rate = 25%,
- \(T\) is the time in years.

Since the repayment is made in 4 monthly installments, \(T = \frac{4}{12} = \frac{1}{3}\) years.

\[
SI = \frac{19,800 \times 25 \times \frac{1}{3}}{100}
\]

Let's calculate this.The simple interest (SI) for the loan amount is ₹1,650.

### Step 3: Total amount to be repaid
The total amount to be repaid is the sum of the principal and the interest:

\[
\text{Total Repayment} = 19,800 + 1,650 = ₹21,450
\]

### Step 4: Calculate each installment
Since the amount is to be repaid in 4 equal monthly installments, each installment will be:

\[
\text{Installment} = \frac{\text{Total Repayment}}{4} = \frac{21,450}{4}
\]

Let's calculate the installment amount.Each monthly installment will be ₹5,362.50.

Would you like any additional details or clarifications?

Here are 5 related questions you could explore:
1. How would the installments change if the interest rate were lower?
2. What if the repayment period was 6 months instead of 4?
3. How would compound interest affect the monthly installments?
4. What is the formula for calculating the total interest on any simple interest loan?
5. How does the down payment affect the overall repayment amount?

**Tip:** Always double-check the time period used in interest calculations, especially when switching between months and years.

A mobile phone is available for Rs. 25,000 or Rs. 5,200 down payment, followed by 4 equal monthly installments. If the rate of interest is 25% p.a. simple interest, calculate the amount of each installment.

Learn how to calculate the monthly installments for a loan of Rs. 19,800 at 25% simple interest over 4 months. Understand key concepts like simple interest and installment payments, and see a step-by-step solution.

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