Question

Mr.Kaushik took a loanof Rs.50,000 from a bank. He paid back Rs.80,000 in 3 years. How much extra amount (interest) did he pay back to the bank?

How much amount did he pay back per year?

Answer 1

$$\begin{gathered} \mathrm{Given}\mathrm{that},\mathrm{Principal}\mathrm{Amount}\left(\mathrm{P}\right)=\mathrm{Rs}50,000 \\ \mathrm{Year}\left(\mathrm{T}\right)=3\mathrm{years} \\ \mathrm{Extra}\mathrm{amount}\mathrm{paid}\mathrm{back}\mathrm{to}\mathrm{the}\mathrm{bank},\mathrm{Simple}\mathrm{Interest}\left(\mathrm{S}\right)=\mathrm{Rs}80,000-\mathrm{Rs}50,000=\mathrm{Rs}30,000 \\ \mathrm{We}\mathrm{know}\mathrm{that}, \\ \mathrm{S}.\mathrm{I}.=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{T}}{100} \\ \Rightarrow 30,000=\frac{50,000\times \mathrm{R}\times 3}{100} \\ \Rightarrow \mathrm{R}=\frac{100\times 30,000}{50,000\times 3} \\ \Rightarrow \mathrm{R}=20\% \\ \mathrm{Thus}, \\ \mathrm{The}\mathrm{amount}\mathrm{which}\mathrm{he}\mathrm{pays}\mathrm{back}\mathrm{per}\mathrm{year}=20\%\mathrm{of}50,000=\frac{20}{100}\times 50,000=\mathrm{Rs}10,000 \\ \mathrm{Hence},\mathrm{he}\mathrm{pays}\mathrm{back}\mathrm{to}\mathrm{the}\mathrm{bank}\mathrm{Rs}10,000\mathrm{per}\mathrm{year}. \end{gathered}$$