Question

A Mahajan lends a loan on 2% interest on the condition that if the interest is not paid in six months. Interest will also be charged on interest. One person lends Rs 2000 to the condition. Tell him 1 year 6 months later. How much will it be to repay the loan, whereas in the middle period, he did not pay any interest.​

Answer 1

$a = 2000 (1 + { \frac{2}{100} })^{3} \\ a = \frac{2 \times 102 \times 102 \times 102}{1000} \\ a = 2122.416 \\ interest = 2122.416 - 2000 \\ = 122.416 \\ he \: will \: pay \: 2122.416 \: \: rs$