Question

Raj obtained a loan of 20,000 from State Bank of India to renovate his house. If the rate of interest is 16% per
annum, find the compound interest he will pay after 3 years​

Answer 1

Answer:

20,960 is the answer

Please mark as branliest answer

Answer 2

Step-by-step explanation:

Given that:-

The amount taken as loan from the bank by Raj=Rs. 20,000

Principle(p)=20,000

Rate of interest(R)=16%

Time (T)=3 years

If interest is calculated annually one time as compound

no.of times(n)=3

we know that

Amount=P(1+R/100)^n

=>A=20,000[1+(16/100)]³

=>A=20,000[1+(4/25)]³

=>A=20,000[(25+4)/25]³

=>A=20,000[29/25]³

=>A=(20,000×29×29×29)/(25×25×25)

=>A=(32×29×29×29)/25

=>A=780448/25

=>A=31,217.92

Total amount he will pay after 3 years=Rs.31,217.92

Now Interest =Amount -Principle

=>I=31217.92-20000

=>I=Rs. 11,217.92

the compound interest he will pay after 3 years=Rs. 11,217.92