Jethalal took a housing loan of Rs 2,50,000 from a bank at 10 p.c.p.a. for 5 years. What is the yearly interest he must pay and the total amount he returns to the bank?
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Step-by-step explanation:
Given:
Principal (P) = 250000 rupees,
Rate of interest (R) = 10%
Time (T) = 5 years
Total interest (I) = P×R×T100
=250000×10×5100
= 125000 rupees
Now, total amount = P + I
= 2500000 + 125000
= 375000 rupees
Hence, Jethalal will have to pay 125000 rupees as an interest and 375000 as the the total amount to the bank.
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