Question

A man borrowed of rs 250000 from a bank
at an interest of 5 to p.a for 2 years. find out the simple interst​

Answer 1

Answer:

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Answer 2

Compound Interest is nothing but Simple interest per year with the amount at the end of every year being the principal for the next year.

For the first year ,

Simple Interest SI=100PNR

So, SI=10025000×1×20=Rs5000

So, Amount A=25000+5000=Rs30000

For the second year ,

P =30000−8000=Rs22000

So, SI=10022000×1×20=Rs4400

So, Amount A=22000+4400=Rs26400

For the third year ,

P =26400−8000=Rs18400

So, SI=10018400×1×20=Rs3680

So, Amount A=18400+3680=Rs22080

So, Rs22080 has to paid off to clear the loan.