Indian Institute of Foreign Trade 2019 Solved Paper

Ms. Debjani after her MBA graduation wants to have start-up of her own. For this, she uses ₹ 8,00,000 of her own savings and borrows ₹ 12,00,000 from a public sector bank under MUDRA Scheme.As per the agreement with the bank,she is supposed to repay the principle of this loan equally over the period of the loan which is 25 years. Two years after taking the first loan, she borrowed an additional loan of ₹8,00,000 to finance expansion plan of her start-up. If Ms. Debjani clears all her loans in 25 years from the date of taking the first loan, how much total interest she has to pay on her initial borrowing ? Assume simple interest rate at 8 percent per annum.