Question

(c) Sumit took a loan of Rs. 16000 from Bank of Baroda for 3 years at the rate of 12.5% p.a.

compounded annually. Find the amount and the compound interest he has to pay at the

end of 3 years to clear his debt to the nearest rupee. ​

Answer 1

compound interest=

$16000{(1 + 12.5 \div 100)}^{3} \\ 16000( {1 + 1 \div 8)}^{3 } \\ 16000( {9 \div 8)}^{3} \\ 16000(729 \div 512) \\ 22781.25$

Answer 2

12.5=125/10=25/2

Amount=P(1+R/100)^n

=16000(1+25/2÷100)^3

=16000(1+1/8)^3

=16000(9/8)^3

=16000(729/512)

=125(729/4)

=91125/4

Amount=22781.25

Compound Interest=Amount-Principal

=22781.25-16000

=6781.25