Question

Mr. Bubey borrows Rs. 100000 from a bank at 10%p.a. compound interest. What amount will have to pay to the bank after 3 years?

Answer 1

Amount required =principal(1+rate/100)^time.
So given information is principal=₹100000 and rate =10% ,time = 3 years.
Hence by using the formula,
Amount required =100000(1+10/100)^3 =100000(1.1)^3= 100000(1.331) = ₹133100. So he has to pay ₹133100 to the bank after 3 years . Hope it helps you...