# What is the interest payable on a loan of 5000000 borrowed at 10% p.a for 5 yrs. and 20 yrs.

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### 1 Answer

For an amount of 5000000 borrowed at 10% p.a the interest payable in a time period t is equal to 5000000((1+0.1)^t - 1)

The interest payable for 5 years is equal to 5000000(1.1^5 - 1) = 3052550

The interest payable for 20 years is 5000000(1.1^20 - 1) = 28637499.75

**The interest payable if 5000000 is borrowed at an interest rate of 10% for 5 years is 3052550 and for 20 years it is 28637499.75**