P borrows a sum of ₹ 5,00,000 from a bank which charges simple interest at 18\% per annum at the beginning of

Question

P borrows a sum of ₹ 5,00,000 from a bank which charges simple interest at 18\% per annum at the beginning of the year. He pays 11 equal monthly installments of ₹ 40,000 and mortgages his bike at the end of the year to pay the remaining amount. What is the value of the pledged bike?

Accepted Answer

Total Principal borrowed, P = ₹5,00,000 .Interest Rate, R = 18\% per annum simple interest.Time = 1 year .Total simple interest accrued at the end of the year: SI = P × R × T/100 = 5,00,000 × 18 × 1/100 = ₹90,000 Total Amount due at the end of the year = Principal + Interest = 5,00,000 + 90,000 = ₹5,90,000 P pays 11 equal monthly installments of ₹ 40,000 : Total amount paid in installments = 11 × 40,000 = ₹4,40,000 The remaining amount is cleared by mortgaging his bike at the end of the year: Va

P borrows a sum of ₹ $5, 00, 000$ from a bank which charges simple interest at $18%$ per annum at the beginning of the year. He pays $11$ equal monthly installments of ₹ $40, 000$ and mortgages his bike at the end of the year to pay the remaining amount. What is the value of the pledged bike?

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P borrows a sum of ₹5,00,000 from a bank which charges simple interest at 18% per annum at the beginning of the year. He pays 11 equal monthly installments of ₹40,000 and mortgages his bike at the end of the year to pay the remaining amount. What is the value of the pledged bike?