Question

Jethalal took a housing loan of 2,50,000 rupees from a bank at 10 p.c.p.a. for 5 years. What is the yearly interest he must pay and the total amount he returns to the bank?

Answer 1

Given:
Principal (P) = 250000 rupees,
Rate of interest (R) = 10%
Time (T) = 5 years
Total interest (I) = $\frac{P\times R\times T}{100}$
$=\frac{250000\times 10\times 5}{100}$
= 125000 rupees
Now, total amount = P + I
= 2500000 + 125000
= 375000 rupees
Hence, Jethalal will have to pay 125000 rupees as an interest and 375000 as the the total amount to the bank.