Question

Rakesh borrowed
rupees 50000 from Allahabad Bank to buy two wheeler at 8 % per annum compounded annually what amount will he pay to the bank after 3 years to discharge his debate ?

Answer 1

Question:-

Rakesh borrowed rupees 50000 from Allahabad Bank to buy two wheeler at 8 % per annum compounded annually what amount will he pay to the bank after 3 years to discharge his debate ?

Required Answer:-

Given:-

• Rakesh borrowed rupees 50000
• He borrowed at 8% per annum compounded annually

To Find:-

• Amount he will pay after 3 years

Solution:-

We know that:-

• A = P (1 + R/100)^T

Where,

• A = Amount
• P = Principal Amount
• R = Rate of interest
• T = Time

We have,

• Principal amount P = Rs. 50,000
• Rate of interest R = 8%
• Time T = 3 years

Substituting the values:-

• ➡ Amount = Rs. [50,000( 1 + 8/100)^3]
• ➡ Amount = Rs.[50,000(1 + 0.08)^3]
• ➡ Amount = Rs.[50,000(1.08)^3]
• ➡ Amount = Rs.(50,000 × 1.259712)
• ➡ Amount = Rs. 62985.6

Hence, he will pay Rs. 62985.6 after 3 years to discharge his debate.

Some Important Informations:-

• Simple Interest:- Simple interest is a quick and easy method of calculating the interest charge on a loan.

• Compound Interest:- Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

• Simple Interest Formula:- I = PTR

• Compound Interest Formula:- C = A - P

• Final Amount Formula (During simple interest):- A = P(1 + TR)

• Final Amount Formula (During compound interest):- A = P(1 + R)^T