Hi,
I have heard of S.I & C.I calculation while doing FD / loan calculations. Recently I have come across the following logic. Please let me know how it is possible.
A family member of mine has loaned an amount of 1,00,000 to a person who pays Rs 2 for every 100 Rs monthly so that comes about .02 * 1,00,000 = 2000.
That means if I loan 50,00,000 to a person with the same logic I get a monthly amount of 0.02 * 50,00,000 = whopping 1,00,000.
How is this possible ? What kind of Simple Interest calculation is this ?
Thanks for educating me !