Question

Anita borrowed 50000 for one year five month at 12% per annum per annum compounded annually. How much money will she have to pay back to settle account​

Answer 1

Answer:

Amount (A) = 58,800

Step-by-step explanation:

Principal (P) = 50,000

Rate (R) = 12%

Time (T) = 1 year and 5 months

-> First, we will calculate the Compound Interest for 1 year

-> A = P ( 1 + R/100 ) ⁿ

-> A = 50,000 ( 1 + 12/100 ) ¹

-> A = 50,000 ( 1 + 3/25 ) ¹

-> A = 50,000 ( 28/25 ) ¹

-> A = 56,000

-> Now, we can find the Compound Interest for 5 months

-> SI = P x R x T/100

-> SI = 56,000 x 12 x (5/12)/100

-> SI = 560 x 12 x (5/12)/1

-> SI = 2800

-> 56,000 + 2800 = 58,800

-> Therefore, Anita will pay back 58,800

Hope you find this helpful.