Multiple choice

Sudhakar borrows Rs. $15000$ from a bank to renovate his house. He borrows the money at $90$% p.a. simple interest over $8$ years, What are his monthly repayments?

  1. $10250$
  2. $1281.25$
  3. $123800$
  4. $108000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total interest = (15000 * 90 * 8) / 100 = 108000. Total amount = 15000 + 108000 = 123000. Monthly repayment = 123000 / (8 * 12) = 123000 / 96 = 1281.25.

AI explanation

Using the Simple Interest formula, the interest is calculated as (Principal x Rate x Time) / 100, which gives (15000 x 90 x 8) / 100, resulting in Rs. 108000. Adding this interest to the principal gives a total repayment amount of Rs. 123000. Dividing this total by 96 months yields a monthly repayment of Rs. 1281.25.

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