Sai wants to buy a house costing k80,000. He pays a deposit of 20%to the bank. If the bank charges k20 per month k1,000 borrowed , how much will he repay per month

To calculate how much Sai will repay per month, let's break it down step by step:

1. **House Cost**: K80,000
2. **Deposit**: Sai pays a 20% deposit to the bank.
   - Deposit amount = \( 20\% \) of \( K80,000 \)
   - \( \text{Deposit} = 0.20 \times K80,000 = K16,000 \)

3. **Loan Amount**: The remaining amount that Sai borrows from the bank is the house cost minus the deposit.
   - Loan amount = \( K80,000 - K16,000 = K64,000 \)

4. **Monthly Repayment**: The bank charges K20 per month for every K1,000 borrowed.
   - Sai borrowed K64,000, so he pays K20 for every K1,000.
   - Monthly repayment = \( \frac{64,000}{1,000} \times K20 = 64 \times K20 = K1,280 \)

Therefore, Sai will repay **K1,280 per month**.

Do you want further details or have any questions? Here are some related questions to consider:

1. How many years will Sai take to repay if he wants to finish within 10 years?
2. What would happen if the bank increased the rate to K25 per K1,000 borrowed?
3. How much total interest will Sai pay over the full loan period?
4. What would Sai’s monthly repayment be if he borrowed only K50,000?
5. How much would Sai save if he could negotiate a lower rate?

**Tip**: It’s always good to compare different loan offers from banks, as even small changes in rates can significantly affect monthly repayments and total interest!

Sai wants to buy a house costing K80,000. He pays a deposit of 20% to the bank. If the bank charges K20 per month for every K1,000 borrowed, how much will he repay per month?

Learn how to calculate the monthly repayment for a house costing K80,000 with a 20% deposit. The bank charges K20 per month for every K1,000 borrowed. Detailed step-by-step breakdown of deposit, loan amount, and monthly repayment for Grades 6-8.

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