Question

Nupur water colour TV set for rupees 20,000 if the
shopkeeper charges interest at 15% per annum compounded annually what I will she pay after 3 years​

Answer 1

Given:

Nupur bought colour TV set for 20,000 rupees and the shopkeeper charges interest at 15% per annum compounded anually

To find:

We need to calculate the compound amount Nupur has to pay the shopkeeper after 3 years

Solution:

The required formula to calculate the amount to be paid is

     $A=P(1+\frac{r}{n} )^{nt}$

where,

A=Total amount to be paid after compounding

P=Principal amount

r=rate of interest in decimals

n=number of times interest is compounded per unit time 't'

t=time period

• According to the given question,

P=20,000       r = $\frac{15}{100}$ = 0.15       n=1       t=3

and we need to find the value of A?

• Substitute the values in the above stated relation    

$A=20000(1+\frac{0.15}{1} )^{(1)(3)}$

$A=20000(1.15)^{3}$

$A=20000(1.520875)$

$A=30417.5$

∴The amount to be paid by Nupur to the shopkeeper after 3 years is  Rs.30,417.5