A man purchase a TV with cash payment of Rs. 12500 and rest amount was paid in two equal installments of Rs.6480 at the rate of 12.5% compound interest. Find the price of TV.

Rs. 23380

12.5% = \(\frac{1}{8}\)

              Principal   :    Installment

1st     →       8        :          9

2nd    →      8²       :         9²               

(Make installment equal, multiply 1st by 9)

              Principal   :    Installment

1st     →     72        :         81

2nd    →    64         :         81    

(Total Pri.) 136       :         81 (one installment)

                    ↓                ↓

                  ×80            ×80

                    ↓                ↓

                10880          6480 *(given)

Therefore,

Price of TV = 10880 + 12500 = 23380