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In the paper the problem of fluid flow and heat transfer in tube with internal longitudinal triangular fins is investigated.The governing equation for the Newtonian fluid flow can be easily transformed into the Laplace equation.Then the problem is solved using the method of fundamental solutions.The heat transfer problem is described by a nonlinear governing equation and the Picard iteration method is employed.In the Picard iteration method the nonlinear problem is transformed into a sequence of inhomogeneous problems which on each iteration step are solved using the method of fundamental solutions in combination with the radial basis functions.