Question

a good natured shopkeeper offers a coloured tv set worth 45000 at 5000 cash down payment and the rest in 10 equal installments.if the interest at 5percent is charged on the outstanding balance and the entire amount of interest so earned is given away to an orphanage to provide medical facilities find the interst.what values does the an gesture reflect

Answer 1

According to question

total cost of TV = 45000 Rs
and 
Down payment  = 5000 Rs
thus
Payment Left = 40000 Rs
if the payment is divided into 10 installments
then
1 installment = 40000/10
                     = 4000 Rs each
total interest = 5%
Thus
amount of interest = 5% of 4000
                              = Rs 200
in 10 months amount interest = 200 * 10
                                               = 2000 Rs