Question

Girishbhai lends ₹ 47,000 to his friend Mohanbhai for 1 year and 3 months at the rate of 8%. How much amount would he get from Mohanbhai at the end of the term?

Answer 1

The compound interest accumulation :

P × (1 + i)ⁿ

P = amount lent = 47000

i = interest rate = 8%

n = 1.25years

Doing substitutions :

47000 × (1.08)^1.25 = 51746.09

Rs 51746.09