Question

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

Answer 1

Principle $=Rs.2,50,000$

Rate$=10$% per annum

time$=5$years

$\therefore SI$ for $5$ years$=\frac{P\times R\times T}{100}=\frac{2,50,500\times 10\times 5}{100}=Rs.1,25,000$

$SI$ per year$=Rs\frac{1,25,000}{5}=Rs.25,000$

Amount that he must pay back

$=Rs2,50,000+Rs1,25,000=Rs3,75,000$