Problem: A borrower’s pays 6.5 percent interest per year on the first Tk. 600 he borrowed and 7.25 percent per year on the part of the loan in excess of Tk. 600. How much interest will the borrower pay on a loan of Tk. 6,500 for 1 years.
View all: SHAJALAL ISLAMI BANK(TSO) WRITTEN QUESTION (MATH) SOLVE | 2016
Correct Answer: Total interest is 466.75 Tk.
Explanation:
As the borrower pays 6.5 percent interest per year on the first Tk. 600 he borrowed
For first Tk. 600, interest, I$_{1}$= $\frac{600\times 6.5\times 1}{100}$ = 39 Tk.
As he apys 7.25% in excess of Tk. 600
Amount in excess of Tk. 600 = Tk. (6,500 – 600) = Tk. 5,900 We have
Interest, I$_{1}$ = $\frac{5900\times 7.25\times 1}{100}$ = 427.75 Tk.
Total interest I$_{1}$ = I$_{1}$ +I$_{2}$ = 39 + 427.75 = 466.75 Tk.
