Question

You are planning to buy a recondition F Premio car and for this purpose you have taken loan 1.5 million from Mutual

Trust Bank. Loan repayment time is 10 years. Assume 9% per year interest rate is applied. If you pay back the loan in ten

equal annual (per year) installments, how much will this installment be?

Answer 1

Here, $P=1.5\times 10^6$

$r=9$ %, $t=10years$

Amount after 10 yeras$=\dfrac{p\times r\times t}{100}=\dfrac{1.5\times 10^6\times 9\times 10}{100}=1350000$

Installment for 1 year=$\dfrac{1350000}{10}=135000=0.135 milion$