Question

Karim took a loan of rupees 25000 from Corporation Bank at 12% per annum compounded annually how much amount we will have to pay at the end of the year

Answer 1

General formula to find compound interest:

$A = P(1 + \dfrac{r}{n} )^{nt}$

Simplifying the formula:

The number of year = 1 ⇒ n = 1

It is compounded yearly ⇒ t = 1

Therefore: A = P( 1 + r)

Write the rate in percentage:

12% = 12 ÷ 100 = 0.12

Applying the formula:

A = 25000( 1 + 0.12)

A= Rs 28000

Answer: He will have to pay Rs 28000 at the end of the year.

Answer 2

Answer : Amount = Rs 28,000


Explanation :-

Given :

Principal = Rs 25000

Rate of interest = 12%

Compounded annually (n) = 1


Finding the Amount :-

Amount = P(1 + r/100)^n

Amount = 25000(1+12/100)^1

Amount = 25000(1+0.12)

Amount = 25000(1.12)

Amount = 28,000


Hence :

Amount he will have to pay at the end of the year is ₹ 28000