It looks like you're asking for the solution to the problem about Lucky's house purchase.

Let's
break it down step by step:
1. Calculate the Loan Amount:
●​ Cost of the house: \text{sh} 110 \text{m}
●​ Deposit: \text{sh} 10 \text{m}
●​ Loan amount: 110 \text{m} - 10 \text{m} = \text{sh} 100 \text{m}
2. Track the Loan Balance Year by Year:
●​ Year 1:
○​ Beginning balance: \text{sh} 100,000,000
○​ Interest for the year (8\%): 0.08 \times 100,000,000 = \text{sh} 8,000,000
○​ Balance after interest: 100,000,000 + 8,000,000 = \text{sh} 108,000,000
○​ Total paid in installments (12 months): 12 \times 1,800,000 = \text{sh} 21,600,000
○​ Ending balance after Year 1: 108,000,000 - 21,600,000 = \text{sh} 86,400,000
●​ Year 2:
○​ Beginning balance: \text{sh} 86,400,000
○​ Interest for the year (8\%): 0.08 \times 86,400,000 = \text{sh} 6,912,000
○​ Balance after interest: 86,400,000 + 6,912,000 = \text{sh} 93,312,000
○​ Total paid in installments (12 months): 12 \times 1,800,000 = \text{sh} 21,600,000
○​ Ending balance after Year 2: 93,312,000 - 21,600,000 = \text{sh} 71,712,000
We need to continue this process until the loan is cleared. This can be a bit tedious to do
manually for many years. There might be a formula to solve this more directly, but the
step-by-step approach shows how the balance changes.
Let's try to think about how to find the number of years more efficiently.
Let B_n be the balance at the beginning of year n. Let I be the annual interest rate (0.08). Let P
be the total annual payment (12 \times 1,800,000 = 21,600,000).
Then, the balance at the beginning of year n+1 can be represented as: B_{n+1} = B_n (1 + I) - P
With B_1 = 100,000,000.
We need to find n such that B_n (1 + I) \le P (in the final year, the remaining balance plus
interest should be less than or equal to the total annual payment).
Let's continue the calculation:
●​ Year 3:
○​ Beginning balance: \text{sh} 71,712,000
○​ Interest: 0.08 \times 71,712,000 = \text{sh} 5,736,960
○​ Balance after interest: 71,712,000 + 5,736,960 = \text{sh} 77,448,960
○​ Ending balance after Year 3: 77,448,960 - 21,600,000 = \text{sh} 55,848,960
●​ Year 4:
○​ Beginning balance: \text{sh} 55,848,960
○​ Interest: 0.08 \times 55,848,960 = \text{sh} 4,467,916.80
○​ Balance after interest: 55,848,960 + 4,467,916.80 = \text{sh} 60,316,876.80
○​ Ending balance after Year 4: 60,316,876.80 - 21,600,000 = \text{sh} 38,716,876.80
●​ Year 5:
○​ Beginning balance: \text{sh} 38,716,876.80
○​ Interest: 0.08 \times 38,716,876.80 = \text{sh} 3,097,350.14
○​ Balance after interest: 38,716,876.80 + 3,097,350.14 = \text{sh} 41,814,226.94
○​ Ending balance after Year 5: 41,814,226.94 - 21,600,000 = \text{sh} 20,214,226.94
●​ Year 6:
○​ Beginning balance: \text{sh} 20,214,226.94
○​ Interest: 0.08 \times 20,214,226.94 = \text{sh} 1,617,138.16
 ○​ Balance after interest: 20,214,226.94 + 1,617,138.16 = \text{sh} 21,831,365.10
○​ Now, in the 6th year, the remaining balance after interest (\text{sh} 21,831,365.10)
is slightly more than the total annual payment (\text{sh} 21,600,000). This means it
will take slightly more than 6 years.
Let's calculate how many months into the 7th year it will take:
●​ Balance at the beginning of Year 7 (after 6 years of payments): \text{sh} 21,831,365.10 -
21,600,000 = \text{sh} 231,365.10
Now, we need to pay off \text{sh} 231,365.10 with monthly installments of \text{sh} 1,800,000.
Number of months in the 7th year = 231,365.10 / 1,800,000 \approx 0.1285 months. This is less
than one month.
So, it will take 6 full years and a fraction of the 7th month.
Answer to Question 1: How long will it take to clear the loan?
It will take 6 years and a fraction of a month in the 7th year. To be more precise about the
number of months:
●​ 6 full years = 6 \times 12 = 72 months
●​ Plus approximately 0.1285 of a month.
So, it will take slightly over 72 months. For practical purposes, we might say it will be cleared
within the 73rd month.
Answer to Question 2: The interest paid?
To find the total interest paid, we need to calculate the total amount paid and subtract the
original loan amount.
Total amount paid = (Number of full years \times Total annual payment) + (Final partial month
payment)
Since the final payment will be the remaining balance after the interest in the 6th year, which is
\text{sh} 21,831,365.10, and then the small remaining amount in the 7th month.
Let's reconsider the total payments:
●​ 6 full years of payments: 6 \times 21,600,000 = \text{sh} 129,600,000
●​ Payment in the 7th year to clear the remaining balance (after the 6th year interest):
\text{sh} 21,831,365.10 (This covers the remaining principal and the interest accrued in
the 6th year on the outstanding balance).
Total amount paid = 129,600,000 + 21,831,365.10 = \text{sh} 151,431,365.10
Total interest paid = Total amount paid - Original loan amount Total interest paid =
151,431,365.10 - 100,000,000 = \text{sh} 51,431,365.10
Summary of Answers:
1.​ How long it will take to clear the loan: Slightly over 72 months (6 years and a fraction
of the 7th month).
2.​ The interest paid: \text{sh} 51,431,365.10
Let me know if you'd like any part of this explained in more detail!