Question

Sudhakar borrows Rs. 15000 from a bank to renovate his house. He borrows the money at 9% p.a. simple interest over 8 years. What are his monthly repayments?

Answer 1

the for this question is 10800

Answer 2

Answer:

Step-by-step explanation:

Simple interest is the method to calculate the interest charged on a loan. It is determined by multiplying the principal amount by the interest rate by the number of days elapsing between the payments.

Principal = p = 15000

Rate = r = 9%

Time = t = 8 years

According to the simple interest formula -

SI =p ×  r × t /100

SI = 15000 × 9 × 8/100

= 150 × 72

=10800

Thus, the total amount = 10800+15000

= 25800

Monthly payments = 25800/ (8 × 12)

= 25800/96

= 268.4