Question

A sum of 10000 is borrowed at 2% p.a. compounded annually. find the amount and ci to be paid back at end of 3 years.

Answer 1

$\huge{\underline{\underline{\red{Solution:-}}}}$

Given that :-

$\star$ Principal = 10000

$\star$ Rate = 2%

$\star$ Time = 3years

THEN ACCORDING TO THE QUESTION

Using formula :-

$\huge\boxed{A = P{(1+\frac{r}{100})}^{t} }$

A = amount

P = principal

R = rate

T = time

putting the value

$A = 1000 {( 1 + \frac{2}{100})}^{3} \\ \\ A = 1000 {( 1 + \frac{1}{50})}^{3} \\ \\ A = 1000{( \frac{50 +1}{50})}^{3} \\ \\ A = 1000{(\frac{51}{50})}^{3} \\ \\ A = 1000 × \frac{51}{50} × \frac{51}{50} × \frac{51}{50} \\ \\ A = \frac{51×51×51}{125} \\ \\ </p><p>A = 1061.20..\\ \\ \huge\boxed{Amount= 1061.20..}$

To find out compound interest :-

$\boxed{\boxed{\boxed{Compound\: Interest = Amount - Principal}}}$

Compound interest = 1061.20 - 10000

Compound interest = 61.20..

$\huge{\boxed{\boxed{Compound\: Interest = 61.20}}}$