MTH302 - Business Mathematics & Statistics GDB No 1 November 23, 2015

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

Answer = 3,420,000/-