Question

4.Vimal obtains a loan of ₹64000 against his fixed deposits. If the rate of interest be 2.5 paise per
rupee per annum, calculate the compound interest payable after 3 years.​

Answer 1

Answer:

P = Rs. 64000

r = 2.5 paise per rupee per annum (given)

= 0.025 rupee per rupee per annum

= 0.025 x 100 rupee per hundred rupee per annum

= 0.025 x 100 per cent per annum

= 2.5 per cent per annum

t = 3 years

C.I. = 6400[(1 + 2.5/100)3 - 1]

= 64000[(1.025)3 - 1]

= 64000[1.0769 - 1]

= 64000 x 0.0769

= 4921.6

= Rs. 4921

∴ The compound interest payable is Rs. 4921.