Question

Find the amount to be paid at the end of an year on Rs 20000 at 5% compounded annually.

Answer 1

Step-by-step explanation:

Given :-

The principle = Rs. 20000

Rate of interest = 5%

To find:-

Find the amount to be paid at the end of an year on Rs 20000 at 5% compounded annually. ?

Solution :-

Given that

The principle = Rs. 20000

Rate of interest = 5%

Time = 1 year

If the interest cos calculated annually compondly then n = 1

We know that

A = P[1+(R/100)]^n

On Substituting these values in the above formula then

=> A = 20000[1+(5/100)]¹

=> A = 20000[1+(1/20)]

=> A = 20000[(20+1)/20]

=> A = 20000(21/20)

=> A = 1000×21

=> A = 21000

Therefore, Amount = Rs. 21000

Answer:-

The amount to be paid at the end of a year is

Rs. 21000

Used formulae:-

→ A = P[1+(R/100)]^n

→ A = Amount

→ P = Principle

→ R = Rate of Interest

→ n = Number of times the Interest is calculated compoundedly