Question & Answer
QUESTION

Valli took a loan of Rs 9750 for farming purposes. She has to pay it back in equal amounts in 6 months. How much will she have to pay every month?

ANSWER Verified Verified
Hint- Here, we will proceed by using the simple concept according to the problem statement which is the total amount of loan taken will be equal to the product of the number of months taken and the amount to be paid every month.

Complete step-by-step solution -
Given, Amount taken by Valli as loan = Rs 9750
It is also given that the amount of loan taken by Valli (i.e., Rs 9750) is to be paid back in 6 months with equal amounts to be paid each month.
So, after 6 months there will be no money left for Valli to pay for the loan taken earlier.
Here, we can say that the total amount of loan taken by Valli will be equal to the product of the number of months taken to pay the loan amount back and the amount (equal for all the months) to be paid every month.
i.e., Amount taken by Valli as loan = (Number of months taken)$ \times $(Amount paid by Valli every month)
$ \Rightarrow 9750 = \left( 6 \right) \times $(Amount paid by Valli every month)
Amount paid by Valli every month $ = \dfrac{{9750}}{6} = {\text{ Rs 1625}}$
Therefore, Valli has to pay Rs 1625 every month in order to pay back Rs 9750 in 6 months.

Note- In this particular problem, the principal amount is the amount of the loan to be repaid i.e., Rs 9750 and in this case there is no interest which is taken because in next six months, same amount of the sum i.e., Rs 9750 is being paid by Valli (this is only possible where an equal amount is to be paid every month).