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A house loan needs to be repaid in 240 equal monthly installments over 18 Nov 2021, 09:45
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72% (02:08) correct 28% (02:30) wrong based on 177 sessions

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A house loan needs to be repaid in 240 equal monthly installments over 20 years. If the interest component is 70%, 50%, 40%, and 20% of the first, second, third, and forth set of 60 installments, what percentage of the total repayment constitutes the interest compound?

A. 35%
B. 40%
C. 45%
D. 50%
E. 55%
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C
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A house loan needs to be repaid in 240 equal monthly installments over 19 Nov 2021, 19:56
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Bunuel
A house loan needs to be repaid in 240 equal monthly installments over 20 years. If the interest component is 70%, 50%, 40%, and 20% of the first, second, third, and forth set of 60 installments, what percentage of the total repayment constitutes the interest compound?

A. 35%
B. 40%
C. 45%
D. 50%
E. 55%
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(70+50+40+20)/4

= 45 %

Option C
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A house loan needs to be repaid in 240 equal monthly installments over 12 Jan 2022, 11:04
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Can anyone explain this in detail? I couldnt comprehend the exact meaning of the Question
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A house loan needs to be repaid in 240 equal monthly installments over 21 Apr 2022, 10:22
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A house loan needs to be repaid in 240 equal monthly installments over 20 years. If the interest component is 70%, 50%, 40%, and 20% of the first, second, third, and forth set of 60 installments, what percentage of the total repayment constitutes the interest compound?

A. 35%
B. 40%
C. 45%
D. 50%
E. 55%[/quote]


(70+50+40+20)/4

= 45 %

Abhishekgmat87 Can you elaborate this concept?
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A house loan needs to be repaid in 240 equal monthly installments over 22 Apr 2022, 01:11
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Although I got the answer but its a little confusing to me.

Lets say he took a loan of $240 which he will be paying in monthly instalments of $1.

For first 60 months, he'll pay $60 along with 70% interest which comes out to be 60+42 = $102.
for next 60 months , he'll pay 60 + 30 = $90.
For next 60 months, he'll pay 60 + 24 = $84.
For the last 60 months, he'll pay 60 + 12 = $72.

The total Interest comes out to be 42+30+24+12 = $108.

Answer C comes if I calculate 108 is what % of 240 which comes out to be 45%.
But shouldnt I calculate 108 as to what percentage of the total amount that he paid which is 102+90+84+72 = 348.

108 is 30 something % of 348.
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A house loan needs to be repaid in 240 equal monthly installments over 23 Apr 2022, 21:03
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ShekGMAT
A house loan needs to be repaid in 240 equal monthly installments over 20 years. If the interest component is 70%, 50%, 40%, and 20% of the first, second, third, and forth set of 60 installments, what percentage of the total repayment constitutes the interest compound?

A. 35%
B. 40%
C. 45%
D. 50%
E. 55%
Show more


(70+50+40+20)/4

= 45 %

Abhishekgmat87 Can you elaborate this concept?[/quote]

Let us assume the monthly installment be Rs. X
Total amount to be paid in 240 months = 240 * X

The amount paid in 1st, 2nd, 3rd and 4th set of 60 installments will be 60 * X

Interest component in 1st set of 60 installment - 70 % of 60X = 42 X
Interest component in 2nd set = 30X
Interest component in 3rd set = 24X
Interest component in 2nd set = 12X

Total interest component = 42X + 30X + 24X + 12X = 108X

Percentage of interest compound to the total repayment = 108X * 100 / 240X = 45 %
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A house loan needs to be repaid in 240 equal monthly installments over 06 Oct 2025, 21:48
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