mr. x, a very industrious person, wants to establish his own unit. for this he needs an instant loan of ` 5,00,000 and, every five years he requires an additional loan of `100,000. if he had to clear all his outstandings in 20 years, and he repays the principal of the first loan equally over the 20 years, find what amount he would have to pay as interest on his initial borrowing if the rate of interest is 10% p.a. simple interest.
Answers
Answered by
72
Thank you for asking this question. Here is your answer:
The principal should be reduced by 25000 (5,00,000/20)
At the end of 1st year:
Principal 5,00,000
Interest 10% so it will be 50,000
At the end of the 2nd year:
5,00,000 - 25,000 = 4,75000
and the interest (10%) = 4,7500
So at the end of 19th year:
Principal (50,000 - 25,000) = 25,000
interest = 2500
And at the 20th year:
Total interest = 50,000 + 47500 + ...(2500) + 0
= 20/2 (50,000 + 2500)
= 5,25,000 is the final answer for this question.
If there is any confusion please leave a comment below.
Answered by
40
Answer:
Step-by-step explanation:
what is there use of Rs. 100000?
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