MTH302 - Business Mathematics & Statistics GDB No. 01 Solution Fall 2015 Due Date November 23, 2015
Question for Graded Discussion Board (Lectures 01-10)
If you want to get a loan but can only afford to pay Rs.10, 000 per month. How much can you borrow if the interest rate is 5% annually for 30 years?
Opening Date of Graded Discussion Board:
Wednesday, November 18, 2015 at 12:01 a.m.
Closing Date of Graded Discussion Board:
Monday, November 23, 2015 at 11:59 p.m.
Solution:
Total afford to pay per month = 10,000 per month
Total months in 30 years = 12 x 30 = 360 months
So, total he will pay in 360 months = 360 x 10,000 = 3,600,000 (including 5% interest)
5% of 3,600,000 = 180,000 interest
So, actual loan amount borrowed = 3,600,000 - 180,000 = 3,420,000