Question

Abhishek borrowed 15625 from a finance
company to buy T.V. If the rate of interest be
16% compounded annually, what payment he will have to make after 9/4 years?​

Answer 1

Answer:

P=15625

R=16

T=9/4yrs=2whole1/4years=2whole+1/4yrs

compound interest for 2 years

A=P{1+R/100}^n

A=15625{1+16/100}^2

A=15625{116/100}^2

A=625{116/4}^2

A=625{29}^2

A=5,25,625

Therefore amount for 2 yrs=5,25,625

Amount for 1/4 years

P=525625

R=16

T=1/4 yrs

SI=PTR/100

SI=525625×16×1/4×1/100

=10513/5

=212.6

Therefore SI=212.6

Therefore total payment=525625+212.6=525837.6