Question

if a loan is equal to rupees 175000 rate of interest is equal to 4% time is equal to 2 years then amount is be repaid is equal to​

Answer 1

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GIVEN :-

Principal Amount, P = Rs. 175000

Rate of Interest, R = 4%

Time , N = 2 years.

In case of Simple Interest,

The amount of interest , S.I. will be :-

$\bold{S.I. = \frac{P \times R \times N \: }{100} } \\ \\ \bold{ = \frac{175000 \times 4 \times 2 \: }{100} } \\ \\ \bold{ = 1750 \times 8} \\ \\ \bold{ = 14000}$

Thus,

Amount of interest = Rs. 14000

Hence,

Amount is to be prepaid = Pricipal Amount + Amount of Interest

= Rs. (175000 + 14000)

= Rs. 189000

Again,

In case of compound Interest,

The amount is to be repaid will be :-

$\bold{A = P(1 + \frac{r}{100}) {}^{n} } \\ \\ \bold{ =175000 \: (1 + \frac{4}{100}) {}^{2} } \\ \\ \bold{ =175000 \times( \frac{104}{100 } ) {}^{2} } \\ \\ \bold{ = 175000 \times \frac{10816}{10000} } \\ \\ \bold{ = \frac{1892800000}{10000} } \\ \\ \bold{ = 189280}$

Hence,

Amount to be repaid = Rs. 189280