Jethalal took a housing Ioan of 2,50,000 rupees from a bank at 10 p.c.p.a for 5 years. The yearly interest he must pay and the total amount he returns to the bank is Rs. ____.

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Detailed Solution

Concept- The total amount returned by Jethalal to the bank is Rs. 3,75,000. Simple interest is the interest that has accrued on the principal, and the total amount accumulated over a certain period of time is the sum of the principal and the interest that has accrued on the principal. Simple interest is calculated using the formula

, where p is the principal sum, r is the yearly percentage rate of interest, and t is the time period for which the interest is to be calculated (in years) .
Given the principal amount, the interest rate, and the time period in this question, we must first calculate the interest after 5 years before calculating the total amount Jethalal must pay after 5 years.
Given
The amount that Jethalal borrowed from the bank

Rate

Total time for which amount was borrowed

As we are aware, the following formula yields the simple interest on an amount of money.

Consequently, by changing the variables in the following equation, we obtain

This implies yearly interest that Jethalal have to pay

Now, we have to find total amount that Jethalal need to return in bank

Hence, the correct answer is 375000.

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