Question

arif took a loan of rs.80000 at a interest of rate of 10% for 30 years compounded annually.find the interest.

Answer 1

principal = Rs 80, 000   rate of interest = 10%  period = 30 yrs

Sum accumulated = 80, 000 [ 1 + 10/100 ] ^30
                           = 80, 000 * 1.1^30 = Rs.  13, 95, 952.18

Interest = Rs 13, 15, 952.18  for 30 years

Answer 2

We have principal  P = Rs 80000 
      Rate of interest r = 10%
      Time  period    n = 30 yrs

Sum accumulated S = P(1+ r/100)^n
                              = 80000 [ 1 + 10/100 ] ^30
                              = 80000 * 1.1^30 = 1395952.181
We have
       Interest =  S - P= 1395952.181 - 80000 = Rs 1315952.181 
Interest is Rs 13,15,952.181