Mr. Madhukar worked for 5 years in a multi-commodity trading company after graduating from a reputed B-School. He then resigned from his job and started an online garment export business. For his business Madhukar used Rs. 8,00,000/- of his own savings and borrowed Rs. 12,00,000/- from a private sector bank in April, the beginning month of the financial year. Meanwhile, RBI eased the repo rate in May and banks passed on the benefits to the borrowers. As a result, Madhukar borrowed an additional Rs. 9,00,000/- after 4 months at an interest rate that is 10% lower than his earlier borrowing interest rate. If the total interest paid by Madhukarat at the end of that year on both the loans is Rs. 1,39,200/-, what is the interest rate per annum on first borrowing?
💬 Comments (0)