Question

Anand obtained a loan of Rs 125000 from the Allahabad bank for buying computer the banks charge compound interest at 8% per annum compounded annually what amount will he have to pay after three years to clear the debit

Answer 1

$\sf\large\underline{Given:}$

• $\tt{\implies Principal=Rs.125000}$
• $\tt{\implies Time=3\: years}$
• $\tt{\implies Rate=8\%}$

$\sf\large\underline{To\: Find:}$

• Simply by applying formula to calculate Amount]

$\sf\large\underline{Formula\: used:}$

$\tt{\implies A=P\bigg(1+\dfrac{r}{100}\bigg)^n}$

$\tt{\implies A=125000\bigg(1+\dfrac{8}{100}\bigg)^3}$

$\tt{\implies A=125000\bigg(\dfrac{100+8}{100}\bigg)^3}$

$\tt{\implies A=125000\bigg(\dfrac{108}{100}\bigg)^3}$

$\tt{\implies A=125000\bigg(\dfrac{27}{25}\bigg)^3}$

$\tt{\implies A=125000\times\dfrac{27}{25}\times\dfrac{27}{25}\times\dfrac{27}{25}}$

$\tt{\implies A=125000\times\dfrac{19683}{15625}}$

$\tt{\implies A=8\times\:19683}$

$\tt{\implies A=Rs.157464}$

Hence,

• Anand will have to pay Rs.157,464 to clear his debt]

Answer 2

Given:

• Sum=125000
• Time=3years
• Rate=8%

Solution

$a = p(1 + \frac{r}{100} ) {}^{n} \\ \\ a = 125000( \frac{108}{100} ) {}^{3} \\ \\ a = 157464$

Therefore, amount=157464