Question

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?

Answer 1

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.