How much interest in all is paid on a loan of ₹2,40,000 at a flat rate of 9% a year for 5 years?

Explanation

1. 01

   At a flat rate, interest is on the whole loan for every year: $P \times r \times t$.

2. 02

   $2{,}40{,}000 \times 0.09 \times 5 = 1{,}08{,}000$ rupees.