Question

A loan of ₹15000 was taken on compound interest. If the rate of compound interest is 12 p.c.p.a. find the amount to settle the loan after 3 years.

Answer 1

Hey there !

Principle = 15,000

Rate of interest = 12

Number of compoundings = 3 ( One compounding per annum )

We know that ,

$\boxed{ Amount = P \times ( 1 + \frac{R}{100} ) ^{n} }$

A = 15000 ( 1 + 12 / 100 ) ^ 3

A = 15000 ( 112/100)³

A = 15000 ( 28/25)³

A = 15000 ( 1.404928 )

A = 21073.92 Rupees .

Therefore , The loan amounts to 21073.92 Rupees after 3 years .

Answer 2

P = ₹ 15000
R = 12 %
N = 3 years

Amount = To settle the loan after 3
years.

A = P(1+R/100)ⁿ

= 15000(1+12/100)³

= 15000(112/100)³

= 15×112×112×112/10×100

= 15×1404928/1000

= 21073920/1000

A= 21073.92

To settle the loan after 3 years is 21073.92