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

Step-by-step explanation:

Principal = 20,000

rate=16p.c.p.a

time=3 years

Simple Interest=P*R*T/100

=20000*16*3/100

=200*16*3

=9600Rs

So, the interest he will pay is 9600Rs

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=20,000[1+(16/100)]³

=>A=20,000[1+(4/25)]³

=>A=20,000[(25+4)/

=25=>A=780448/25

=>A=31,217.92

Total amount he will pay after3years=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