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It is decided that a loan of ₹10,000 will be paid off at the rate of ₹800 per month in 15 equal instalments. Find out the rate of return on investment.
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- 17% P.a.
- 18% P.a.
- 15% P.a.
- 16% P.a.
- 17% P.a.
Correct Option: D
Given that , Number of monthly instalments = 15
Monthly instalment = ₹ 800
| Time (T) = | = 1 | |||
| 12 | 4 |
∴ Total amount paid = ₹ (800 × 15) = ₹ 12,000
Simple Interest = ₹ (12,000 – 10,000) = ₹ 2,000
When
| ∴ Rate of return = | = 16% | |
| 10000 × 5 |
