Question

Abhay obtains a loan Rs 12000 from the bank for 3 years at the rate of 5% per annum compounded annually. i) Find the amount Abhay has to pay at the end of 3 yrs? ii) Find the compound interest paid by Abhay to the bank?​

Answer 1

Step-by-step explanation:

Given:

Present value =₹16000

Interest rate =721%perannum= 15/2 \%$$

Time =2 years

To find the amount we have the formula,

Amount (A)=P(1+(r/100))n

where P is the present value, r is the rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴A=16000(1+(15/2)/100)2

⇒A=16000(1+3/40)2

⇒A=16000(43/40)2

⇒A=16000(1894/1600)

⇒A=₹ 18490

Now, we find the compound interest,

∴ Compound interest =A–P

=18490–16000=₹ 2490

Now we find the simple interest,

Simple interest (SI)=PTR/100

where P is principle amount, T is time taken, R is rate per annum

SI=(16000×(15/2)×2)/100

=160×15

=₹ 2400

Abhay's gain at the end of 2 years=(CI–SI)

=2490–2400

=₹ 90