Payment and taking a loan of rs. 80000 from the bank. The interest rate on the loan is 6% per annum and the loan is to be repaid in 5 years. What is the total amount of interest paid by the person on the loan?

First, we need to calculate the total amount of the loan, which is the sum of the cash down payment and the loan amount:

Total amount of the loan = Cash down payment + Loan amount
Total amount of the loan = Rs. 20000 + Rs. 80000
Total amount of the loan = Rs. 100000

Next, we need to find the total amount of interest paid over the 5 year loan period. To do this, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the total amount of the loan plus interest
P = the principal amount (loan amount)
r = the annual interest rate (6%)
n = the number of times interest is compounded per year (we'll assume it's compounded monthly, so n = 12)
t = the time period (5 years)

Plugging in the values, we get:

A = 80000(1 + 0.06/12)^(12*5)
A = 80000(1.005)^60
A = 80000(1.348)
A = Rs. 107840

So the total amount of interest paid over the 5 year loan period is:

Total interest = A - P
Total interest = Rs. 107840 - Rs. 80000
Total interest = Rs. 27840

Therefore, the person paid a total of Rs. 27840 in interest on the loan.

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