Question

9. Raghu is an unemployed youngman. He received rueepes 10000 as a loan at the Loan Mela organise by
the State Bank of India. If the bank charges a nominal rate of interest of 5% per annum
the compound interest he will have to pay after 2 years.​

Answer 1

Raghu is an Unemployed Young Man. He receives ₹10000/- as Loan at the Loan Mela organised by the State Bank of India. If the Bank charges a Nominal Rate of Interest of 5% p.a., the Compound Interest He'll have to pay after 2 years is?

Answer:

The Compund Interest to be Paid by Raghu is - ₹ 1, 025/-

Given :

Amount received by Raghu - ₹10,000/- (Consider this as The Principle) ( P )

Rate of Interest - 5% p.a ( R )

Time - 2 years (N)

To Find :

The Compound Interest ( CI )to be Paid by Raghu....

The Total Amount (A) to be Paid by Raghu.....

Solution :

The Formula of Finding the Compound Interest annually is -

$a \: = \: p (1 + \frac{r}{100} ) {}^{n}$

$a = 10000\times (1 + \frac{5}{100} ) {}^{2}$

On Simplification, we get the answer as -

$10000 \times ( \frac{21}{20} ) {}^{2}$

$10000 \times \frac{21}{20} \times \frac{21}{20}$

$25 \times 21 \times 21$

$= 11025$

The Amount is ₹ 11,025/-

But, we've to find the Compound Interest.....

To Find the Compound Interest, we've to use the Formula given -

$compound \: interest \: = total \: amount \: - principle \: amount$

Finding this, we'll the answer as -

Compound Interest = ₹ 11,025 - ₹ 10,000

Compound Interest = ₹ 1,025/-

Therefore, the Compound Interest is ₹. 1,025/-

HOPE THIS HELPS.....

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