Question

3. Ahmed chacha borrowed Rs. 25,000 at
12 p.C.p.a for a year. What amount will
he have to return at the end of year?step by step exaplaintion​

Answer 1

Answer:

Ans. Rs. 28,000

Step-by-step explanation:

Formula for interest is

I=PxRxT

Where,

I = interest

P = principal amount (total amount taken)

R = rate of interest

T = time or tenure

According ro formula

I = 25000 x 12% x 1

= 25000 x 0.12 x 1

= 3000

So, I = Rs. 3000

Total amount to be returned is,

Interest + Principal amount

= 25000 + 3000

Which is Rs. 28,000

Note. Although Ahmed has taken loan on Compound interest but as the tenure is 1 year so he only has to repay on principal amount here.

Answer 2

Answer

Ahmed Chacha borrowed 25,000 at 12% p.c.p.a for a year

p.c.p.a means percent compounded per annum.

So, Interest should be calculated as compound interest but for first years in simple interest and compound interest is same.

So,

Total amount we have to return to return to the bank at the end of the years = 25000+12% of 25000 = 25000+3000 = 28000

Hence, Ahmed Chacha will have to return 28000 rupees to the bank at the end of the year.