2) Harshan took a loan at a rate of simpleinterest 7% in the year with an increase of 0.25% in each subsequent year. He paid interest of Rs. 4425 after 4 years. How muchloan did he take?
Answers
Answer:
Step-by-step explanation:
total interest =rupees 4425,rate=7%
increasing by 0.25% everyear
let total loan amount=p
p=(4425*100)/(7*1+7.25*1+7.5*1+7.75*1)
=442500/29.5
= ruppes 15000
Answer:
Loan taken by Harshan = Rs.15,000
Step-by-step explanation:
P = Principal = Loan taken by Harshan = ?
For the first year:
R = 7 per cent per year
T = 1 year
SI = (P*R*T)/100 = (P*7*1)/100 = 0.07*P
For the second year:
R = 7.25 per cent per year ...(increase of 0.25% over the previous rate)
T = 1 year
SI = (P*R*T)/100 = (P*7.25*1)/100 = 0.0725*P
For the third year:
R = 7.50 per cent per year ...(increase of 0.25% over the previous rate)
T = 1 year
SI = (P*R*T)/100 = (P*7.50*1)/100 = 0.075*P
For the fourth year:
R = 7.75 per cent per year ...(increase of 0.25% over the previous rate)
T = 1 year
SI = (P*R*T)/100 = (P*7.75*1)/100 = 0.0775*P
From the above equations, we get the total simple interest paid over the four-year period as:
0.07*P + 0.0725*P + 0.075*P + 0.0775*P
= (0.07 + 0.0725 + 0.075 + 0.0775) * P
= 0.295*P
We are given that the total simple interest paid = Rs.4425
=> 0.295*P = 4425
=> P = (4425/0.295)
=> P = 15000
The loan taken by Harshan = Rs.15,000