Question

A high school borrows an amount of 100000 from a bank to construct a sceince laboratory the loan is taken on compound interest compound annually at the rate of 8% per annum find the amount paid back at the end of 3 year

Answer 1

C.I = Amount - Principal

Amount = 100000(1+2/25)^3
=100000×27/25×27/25×27/25
=6.4×27×27×27
=125971.2

C.I = 125971.2 - 100000 = 25971.2

Answer 2

at the end of 3 yeqr he has to pay principal+intrest= amount
so A= P(1+R/100)ⁿ
= 100000(1+8/100)³
=100000(27/25)³
= 125971.2