Question

) If I borrowed 100 at interest rate of 7 pcpa, then calculate interest and amount paid after one year ?​

Answer 1

Given:

• Principal = 100 rupees
• Rate % = 7 %
• Time = 1 year

To Find:

• Amount = ?
• Compound Interest = ?

Solution:

As per given principal is given,rate is given and time is given then we are said to find amount and compound interest.

As we know,

$\: \: \sf \: a = p {(1 + \frac{r}{100} )}^{t}$

where,

• a = Amount
• P = Principal
• R = Rate
• T = Time

here,

• P = 100 rupees
• R = 7%
• T = 1 year

Now substitute the values

$\: \: \sf \: a = 100 {(1 + \frac{7}{100} )}^{1} \\ \\ \: \: \sf \: a = 100( \frac{107}{100} ) \\ \\ \: \: \sf \: a = 100 \times \frac{107}{100} \\ \\ \: \: \sf \: a = 107 \: rupees$

Hence, Amount is 107 rupees.

Now find Compound Interest

As we know

$\: \: \sf \: compound \: interest = amount - principal$

Denote Compound Interest be 'C.I'.

Now substitute the values

$\: \: \sf \: c.i = 107 - 100 \\ \\ \: \: \sf \: c.i = 7 \: rupees$

Hence, Compound Interest is 7 rupees.

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Answer 2

Given :

• Principal (P) = Rs 100
• Rate (R) = 7% p.a
• Time (n) = 1 year

To Find :

• Amount
• Compound Interest

Formulas :

• Amount = Principal(1 + Rate/100)ⁿ
• Compound Interest = A - P

Solution :

⠀★⠀Amount = Principal(1 + Rate/100)ⁿ

⠀⟶⠀Amount = 100 × (1 + 7/100)¹

⠀⟶⠀Amount = 100 × (107/100)¹

⠀⟶⠀Amount = 100 × 107/100

⠀⟶⠀Amount = Rs 107

Finding Compound Interest :

⠀★⠀Compound Interest = A - P

⠀⟶⠀Compound Interest = 107 - 100

⠀⟶⠀Compound Interest = Rs 7

So, Amount and Compound Interest are Rs 107 and Rs 7 respectively.

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