Question

I borrowed 12000 from Jamshed at 6% per annum compound interest, what extra amount would I have to pay?​

Answer 1

Answer:

720

Step-by-step explanation:

Given:

Principle (P) = 12,000

Rate (R) = 6% i.e. 0.06%

Time (N) = 1 yrs

$CI = P[(1 + i)^n-1]$

$CI=12,000[(1+0.06)^1-1]$

$[(1.06)^1-1] = 0.06$

CI = 12,000 × 0.06 = 720

EXTRA AMOUNT PAID = 720

TOTAL AMOUNT PAID = 12,720