Question

Bina borrowed a sum of rupees 15000 from a PNC company to buy an air conditioner if the rate of interest 5% per annum compounded annually find the compound interest Lena has to pay after 2 years​

Answer 1

Answer:

Answer:

A = $ 16,537.50

A = P + I where

P (principal) = $ 15,000.00

I (interest) = $ 1,537.50

Calculation Steps:

First, convert R percent to r a decimal

r = R/100

r = 5%/100

r = 0.05 per year,

Then, solve our equation for A

A = P(1 + r/n)^(nt)

A = 15,000.00(1 + 0.05/1)^((1)(2))

A = $ 16,537.50

Summary:

The total amount accrued, principal plus interest, from compound interest on an original principal of $ 15,000.00 at a rate of 5% per year compounded 1 times per year over 2 years is $ 16,537.50.