Prathibha borrows Rs. 47000 from a finance company to buy her first car. The rate of simple interest is 17% and she borrows the money over a 5 year period.

Find:

(a) How much amount Prathibha should repay the finance company at the end of five years.

(b) her equal monthly repayments.

(a) Principal (P) = Rs. 47000

Time period (T) = 5

Rate of interest (R) = 17%

I = Rs. 39950

∴ Interest for 5 years is Rs. 39950

Amount at the end of 5 years = Principal + interest

Amount = 47000+39950

= 86950

∴ Amount at the end of 5 years is Rs. 86950

(b)

⇒ monthly repayment =

= 1449.17

∴ prathibha’s monthly repayment isRs. 1449.17.