a person took a housing loan of Rs. 25,00,000. The loan is to be redeemed in 120 monthly installments of Rs. 31,000 each to be paid at the end of each month. What is the implied interest rate per annum.
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Answered by
0
Answer:
5.5%
Explanation:
Answered by
0
Answer:
The implied interest rate per annum is 17.856%
Explanation:
Given:
Loan interest(I)=31,000
Principal amount(P)=25,00,000
Time(t)=120 months
To find: Rate of interest per anum(R)=?
Solution:
I=(P*R)/N
∴ R=I*N/P
=31000*120/2500000
=1.488%
The rate of interest per month=1.488%
The rate of interest per anum =1.488*12=17.856%
Thus, the implied interest rate per annum is 17.856%
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