If I borrow Rs 700000@12%pa simple interest for 5 years. How much do I owe now? Rs 8000 been deducted from principal every month.

To calculate the amount owed after 5 years when borrowing Rs 700,000 at a 12% per annum simple interest, with Rs 8,000 deducted from the principal each month, we need to break down the problem into smaller steps.

Step 1: Calculate the total interest for 5 years.
To find the total interest, you can use the formula:
Total Interest = Principal * Rate * Time

In this case, the principal (P) is Rs 700,000, the rate (R) is 12% per annum, and the time (T) is 5 years. Plugging these values into the formula, you get:
Total Interest = 700,000 * 0.12 * 5
Total Interest = 420,000

Step 2: Calculate the reduction in principal.
Each month, Rs 8,000 is deducted from the principal. To find the total reduction in principal after 5 years, multiply the monthly deduction by the number of months in 5 years:
Reduction in Principal = Monthly Deduction * Number of Months
Reduction in Principal = 8,000 * 12 * 5
Reduction in Principal = 480,000

Step 3: Calculate the total amount owed.
To find the total amount owed after 5 years, subtract the reduction in principal and add the total interest to the original principal:
Total Owed = Principal - Reduction in Principal + Total Interest
Total Owed = 700,000 - 480,000 + 420,000
Total Owed = 640,000

Therefore, after 5 years, you owe Rs 640,000.