Question

Quiz: How much interest would Akshay pay on a loan for 50000 at the rate of 8% for a period of 10 years?​

Answer 1

Akshay would pay Rs.40,000 as the interest.

Step-by-step explanation:

Given:

loan amount = Rs.50000

rate of interest on loan = 8%

tenure of the loan = 10 years

To find:

Amount of interest payable on the loan amount

Solution:

The interest will be calculated at the interest rate of 8% and for 10 years

Interest amount = P X R X T

                                100

here, P = loan amount = Rs.50,000

R = rate of interest on loan taken = 8%

tenure of loan = T = 10 years

Putting all the values

Interest = 50000 x 8 x 10

                        100

Interest = 4000000

                   100

Interest = Rs. 40,000

Thus, Akshay would end up paying an interest of Rs.40,000 altogether for 10 years on the loan of Rs.50,000.

which will amount to Rs.4000 per year and Rs.333.33 per month.

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