Question

A5.
Calculate the amount that needs to be repaid
at the end of 3 years if a sum of 1,20,000 is
borrowed on simple interest for the first year and
on compound interest for the next 2 years, with
the rate of interest in both the cases being 8% p.a.
​

Answer 1

Answer:

Step-by-step explanation:

sum=120000,interest(R)=8% time =3 years

SI for 1 year PTR/100

120000*1*8/100=9600

Amount =SI+amount

              =9600+120000

              =129600

CI for next 2 years:

Since there is no clarity in question about same sum i.e., 120000 for 2nd and 3rd year or sum taken from the amount of SI

for 1st case same sum:

Rate of Interest for 2 years formula R+R+R^2/100(only for 2 years)

8+8+8^2/100=16.64%

if sum is 120000 then,

CI=16.64% of 120000

  =19968

Total amount :  120000+19968 =139968

Total amount at the end of 3 years to be paid,

CI+SI=139968+129600=269568

for 2nd case sum obtained from SI:

sum=129600

CI=16.64% of 129600

  =21565.44

Total amount to be paid  after 3 yrs 129600+21565.44=151164.44