Question

A man took a loan at 4% p.a. compound interest .After 2 years ,the interest amounted to rs.153 .Find the amount of the loan.
the answer is 1875 just get the method right

Answer 1

Answer:

According to our question, P=4000,r=10%,n=2years. On Calculation A we get, A=P(1+r100)n⇒A=4000(1+10100)2⇒A=P(1+110. Hence the amount after 2 years will be 4840 and it'll only work as the principal amount for simple interest.