Question

6. Sameer gave a loan of 55,000 to Deepak for a period of two years at 16% per annum compounded
yearly. How much interest will Sameer earn?​

Answer 1

Given data,

The loan amount given by Sameer to Deepak is $55000$

Sameer given loan for a period of $2$ years.

The rate of interest compounded annually is $16$%.

Formula for compound interest is,

$A=P(1+\frac{R}{100}) ^{n}$

$P=55000$

$R=16$

$n=2$

Substitute these values in formula.

$A=55000(1+\frac{16}{100} )^{2}$

$A=55000(1+0.16 )^{2}$

$A=55000(1.16 )^{2}$

$A=55000(1.3456)$

$A=74008$

Therefore, the amount of interest the Sameer earns is $74008$.