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Question
Mr. Pramod borrowed a Loan from the State Bank of India ₹ 3,50,000 on 1st Oct. 2018 at the rate of interest of 12% p.a. Calculate the Interest on a bank loan for the year 2018-19, assuming that the financial year-end on 31st March every year.
Solution
Interest on Bank loan for 6 months = `3,50,000 × 12/100×6/12 = ₹ 21,000`
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