Jethalal took a housing loan of Rs 2,50,000 from a bank at 10 p.c.p.a.

1.	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» Here, P = Rs 250000, R = 10 p.c.p.a., T = 5 years ∴ Total interest = (P x R x T)/100 = (250000 x 10 x 5)/100 = 2500 x 10 x 5 = Rs 1,25,000 ∴ Yearly interest = Total interest ÷ Time = 1,25,000 ÷ 5 = Rs 25000 Total amount to be returned = Principal + Total interest = 250000 + 125000 = Rs 375000 ∴ The yearly interest is Rs 25,000 and Jethalal will have to return Rs 3,75,000 to the bank.

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»

Here, P = Rs 250000, R = 10 p.c.p.a., T = 5 years

∴ Total interest = (P x R x T)/100

= (250000 x 10 x 5)/100

= 2500 x 10 x 5

= Rs 1,25,000

∴ Yearly interest = Total interest ÷ Time

= 1,25,000 ÷ 5 = Rs 25000

Total amount to be returned = Principal + Total interest

= 250000 + 125000 = Rs 375000

∴ The yearly interest is Rs 25,000 and Jethalal will have to return Rs 3,75,000 to the bank.