Question

Namita borrowed 27,000 from a bank at a 5% p.a. rate of interest compounded annually Find the approximate amount that she has to pay to the bank after 3 years.

Answer 1

Answer:

Amount to be paid After 3 years = ₹ 31,255.88 (approx.)

Explanation:

A = P (1 + i )^n

(Here i = R/100)

= 27,000 (1 + 0.05 )^3

= 27,000 (1.05)^3

= 27,000 (1.157625)

= ₹31,255.875

Answer 2

Answer:

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest.

Explanation:

Amount =

$amount = p{({1 + \frac{r}{ 100})^{n} } }$

where p = principal = 27000

r = rate = 5%

n = number of years interest to be calculated = 3 years

$27000( {1 + \frac{5}{100}) }^{3} \\ 27000( { \frac{105}{100} )}^{3}$

$= 27000( { \frac{21}{20} )}^{3} \\ = \frac{27 \times 21 \times 21 \times 21 }{2 \times 2 \times 2}$

$\frac{250047}{8} = 31255.87$

Amount =Rs 31255.87

CI = Amount - Principal

CI = 31255.87 - 27000

CI = Rs 4255.87