Question

Obaka borrows 600 at 7% interest compounded annually. He pays off the loan at end of 3 years. How much does he pay?

Answer 1

Step-by-step explanation:

S.I = P × R × T / 100

S.I = 600 × 7 × 3 / 100

= 126 Ans

Answer 2

Given:

Principle - Rs. 600

Rate of interest - 7%

Time period - 3 years.

To Find:

The amount he has to repay.

Solution:

1) Compound interest is the interest over the interest.

Compound Interest = Amount-Principle.

2) $A=P(1+\frac{R}{100})^{T}$

$A=600(1+\frac{7}{100})^{3}$

$A = 600*\frac{107}{100}*\frac{107}{100}*\frac{107}{100}$

A = Rs. 735.0258

3) The amount he has to repay the loan after the three years is Rs. 735.0258.

Repay amount Rs. 735.0258