The price of a T.V. set worth Rs. 40000 is to be paid in 20 installments of Rs. 2500 each. If the rate of interest be 6% per annum, and the first installment be paid at the time of purchase, then the value of the last installment covering the interest as well will be?
Choose one:
A) 29997 B) 28088 C) 27098 D) 37500 E) 2799

Rationale: "money paid in cash = rs . 2500 balance payment = ( 40000 - 2500 ) = rs . 37500 . answer : d"
Answer: D