Question

1. A sum of 7000 is borrowed for 3 years on compound interest. The rates of interest
for the 3 years are 7%, 8% and 9% respectively. Find the amount that has to be repaid
after 3 years.​

Answer 1

Answer:

Principal =7000, R =4%, n =2 (semiannually compounded),

t =3 years

Using the formula, we have

A=P(1+

100

R

)

n.t

⇒A=7000(1+

100

4

)

2×3

⇒A =7000×(1.04)

6

⇒A =7000×1.26531902

Amount =8857.23

Compound interest = Amount − Principal

=8857.23−7000

Compound interest =1857.23