Kris borrows ₱50,000.00 and promises to pay the principal and interest at 12% compounded monthly. How much must he repay after 6 years? *
Answers
Answer:
P is principal amount.= 50,000
r is rate of interest = 12%
n is number of times the interest is compounded=
12/yr
t is the period of time. = 6×12 = 72 months
A = Total Amount
Where: A = P(1 + r/n)^nt
= 50,000. (1 + 12/12)^12×72
A = 102,354.97
A = P + I where
P (principal) = 50,000.00
I (interest) = 52,354.97
hope it helps ☺️
Given: The amount borrowed by Kris = 50,000.00
Rate of interest = 12% compounded monthly
Time = 6 years
To find: The amount he must repay after the given period of time
Solution: The the amount for compound interest is given by the following formula :- A = P(1 + r/n)^nt.
Here, P =50,000.00, r = 12% = 12/100 = 0.12, n = 12, t = 6.
Therefore, the amount he must repay
= 50000(1 + 0.12/12)¹²ˣ⁶
= 50000(1 + 0.01)⁷²
= 50000(1.01)⁷²
= 102,354.97
Therefore, he must repay 102,354.97 after 6 years.
Answer: 102,354.97