Question

A loan of ₹5000 was received from the bank. Every monthly an amount of ₹450 was paid back for an year. What was the interest amount paid back?

Answer 1

Total loan amount = ₹5000
Amount paid back every month = ₹450

1 year = 12 months.
Total amount of money paid back in a year = ₹450 × 12 = ₹5400

Excess amount paid back = ₹5400 - ₹5000 = ₹400
The excess amount paid back to the bank is the interest amount.
So, the interest amount paid back is ₹400