Question

7. Mohan borrowed 16,000 for 3 years at 5% per annum compound interest. Calculate the amount that Mohan would have to pay at the end of 3 years.
plzz explain step by step​

Answer 1

Step-by-step explanation:

For 1

st

year Principal (P)=Rs.16000, Rate (R)=5% Time (T)=1 year

∴ Interest=

100

16000×5×1

​

=160×5=Rs.800

∴ Amount at the end of first year=Rs.16000+800=Rs.16800

For 2

nd

year Principal (P)=Rs.16800, Rate (R)=5% Time (T)=1 year

∴ Interest=

100

16800×5×1

​

=168×5=Rs.840

∴ Amount at the end of second year=Rs.16800+840=Rs.17640

For 3

rd

year Principal (P)=Rs.17640, Rate (R)=5% Time (T)=1 year

∴ Interest=

100

17640×5×1

​

=

2

1764

​

=Rs.882

∴ Amount at the end of third year=Rs.17640+882=Rs.18522

Hence required amount=Rs.18522

Answer 2

Answer:

Rs18522

Step-by-step explanation:

A=P(I+ r/100)^n

where

A is amount

p is principal (in this qus 16000)

n is time

r is rate

A=16000*(105/100)^3

A= 16000([105*105*105]/[100*100*100]

A= 18522