Question

Soham buy a car cost of ₹1000000 he takes loan of ₹565000 for 5 years at 10% compound interest after 4 years he sold his car for ₹700000 for buying a new house cost him ₹5500000 he again take loan of ₹200000 for 7years at 7% simple interest. Now tell how much money soham has to give to bank?

Answer 1

For the first year, P=80000,R=10%, T=1 Interest = 100 P⋅R⋅T = 100 (80000⋅10⋅1) =8000 Amount =Interest+Principle =80000+8000 =88000 For second-year principle will be the amount of the previous year (since interest is compounded annually). P=88000,T=0.5,R=10%. Interest = 100 P⋅R⋅T = 100 (88000⋅10⋅0.5) =4400 Total amount=88000+4400 =Rs. 92400