Question

Rahamatchacha takes a loan amount of ₹ 240000 from a bank for constructing a building at the rate of simple interest of 12% per annum. After 1yr of taking the loan, he rents the house at the rate of ₹ 5200 per month. Let us determine the number of years he would take to repay his loan along with interest from the income of the house rent

Answer

WhatsApp

Let after x years he will repayment the amount.

Interest of ₹ 240000 at 12% for x years

= \frac{240000 × 12 × x}{100}=28800 x

Amount = Principal + Interest

= ₹ (240000+28800x)

Now, house rent for 1 year 12m = ₹ 5200 × 12

\therefore House rent for (x – 1) yrs = ₹ 5200 × 12x(x – 1)

= 62400 (x – 1)

According to the problem,

62400 (x – 1) = 240000 + 28800 x

or, 62400 x – 62400 = 240000 + 28800 x

or, 62400 x – 28800 x = 240000+62400

or, 33600 x = 302400

∴ x =\frac{302400}{33600}=9

∴ After 9 years he will repay his loan with interest.

Was this answer helpful?

Didn't liked the above answer ?

Subscribe
Notify of

Related Questions