Question

Karima took a loan of rs 25000 from corporation bank at 12% p.A, coumpounded annually. How much amount, he will have to pay at trhe end of 3 years

Answer 1

Answer:

Karima took a loan of rs 25000 from corporation bank at 12% p.A, compounded annually. How much amount, he will have to pay at the end of 3 years

Explanation:

formula for calculating EMI for Rs.25000 ,loan is  

$EMI = P\times R \times \frac{(1+R)n}{[(1+R)n-1]}$

P = Principal loan amount = 25000

R = Rate of interest calculated on monthly basis i.e. (R= Annual rate of interest/ 12/100). = 12

For instance, if R = 12% per annum, then R= 12/12/100 = 0.01  and

N = the number of monthly installments. 36

EMI Amount is 830 , Interest paid is 4893 and the total payment would be 29893

Answer 2

Answer:

$\sf\large\underline\purple{Given:-}$

$\sf{\implies Principal=Rs.25000}$

$\sf{\implies Time=3\: years}$

$\sf{\implies Rate=12\%}$

$\sf\large\underline\purple{To\:Find:-}$

$\sf{\implies Amount\:_{(at\:the\:end\:of\:3\: years)}=?}$

$\sf\large\underline\purple{Solution:-}$

To calculate amount at the end of 3 years ,at first we have to apply a formula of compound interest. By substituting the above value we get the amount at the end of 3 years.

$\tt{\implies A=P\bigg(1+\dfrac{r}{100}\bigg)^n}$

$\tt{\implies A=25000\bigg(1+\dfrac{12}{100}\bigg)^3}$

$\tt{\implies A=25000\bigg(\dfrac{100+12}{100}\bigg)^3}$

$\tt{\implies A=25000\bigg(\dfrac{112}{100}\bigg)^3}$

$\tt{\implies A=25000*(1.12)^3}$

$\tt{\implies A=25000*1.404928}$

$\tt{\implies A=35123.2}$

$\sf\large{Hence,}$

$\sf{\implies Amount\:_{(at\:the\:end\:of\:3\: years)}=Rs</p><p>.35123.2}$

$\sf\large{\implies Some\: additional\: information:-}$

To solve the word problems of compound interest at first we have to know something concept about compound interest as you know that in the question of compound interest time is given yearly , half yearly , quarterly so, if time is given half yearly or quarterly then we have to change the time as well as it's rate. To change the time of compound interest , we have to multiply by 2 and in rate dividing by 2 if the time is given in half yearly. If time is given in quarterly then we have to multiply by 3 and in rate dividing by 3. In annually time is not changed. We have to something about principal. It may be lending or borrowing , sum of money, loan ect in the question. Rate means The extra amount you have to pay as per the interest.