Question

Naimish borrows rs 40000 from bank at rate of 7.50% per annum at compound interest for 3 years .at end of every year he pays rs 15000 which consist of interest and a part of loan payment . how much extra he has to pay at the end of third year to finish his loan maths solution?

Answer 1

principle amount = 40000

time = 3

rate of interest = 7.5%

amount = p ( 1+r/100)^n

40000(1 + 7.5/100)^3

40000 ( 1+ 0.075) ^3

40000(1.075)^3

40000 * 1.075 * 1.075 * 1.075  = 49691.875

thanks