Question

in order to buy a car , man borrowed RS.180000 on the condition that he had to pay 7.5% interest every year. He also agreed to repay the principal in equal annual installment over 21 year, After a certain number of years, however , the rate of interest has been reduced to 7% , If is also known that at the end of the agreed period he will have paid in all Rs.270900 in interest for how many years does he pay at the reduced interest rate?​

Answer 1

Let for n years he paid interest 7.5%

And for (21-n) years interest paid was 7%

So,

((180000*n*7.5)/100) + ((180000*7*(21-n))/100) = 270900

Solving it we would be getting n=7

So for 21-7 = 14 years he paid the reduced interest.

So, Answer is 14 Years

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