A house financing company offers you a 12-year mortgage


You plan to buy a flat for Rs 200,000 by making Rs 40,000 down payment. A house financing company offers you a 12-year mortgage requiring end-of-year payments of Rs 28,593. The company also wants you to pay Rs 5,000 as the loan-processing fee, which they will deduct from the amount of loan given to you. What is the rate of interest on loan?

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Accounting Basics: A house financing company offers you a 12-year mortgage
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