Question

Borrowed loan from state bank of India Rs 4,00,000 on 1st October 2019 at rate 10 % p.a Calculate interest on loan for the year 2019 -20 assuming financial year ends o 31st March everyyear​

Answer 1

Answer:

To calculate the interest on a loan for the year 2019-20 assuming financial year ends on 31st March every year, we need to know the following:

Loan amount = Rs. 4,00,000

Rate of interest = 10% p.a.

Duration = 1st October 2019 to 31st March 2020 i.e. 6 months

The formula to calculate simple interest is:

Interest = (P * R * T) / 100

Where P is the principal amount, R is the rate of interest and T is the time period.

So, in this case:

Interest = (4,00,000 * 10 * 6) / (100 * 12) = Rs. 20,000

Therefore, the interest on the loan for the year 2019-20 is Rs. 20,000.

I hope that helps❤️