Question

Raman took a loan of 1,30,000 from a finance company at the rate of 10% p.a. for 15 months motorcycle. How much amount will he pay if the interest is calculated compounded quarterly.Answer=1,47,083.07​

Answer 1

Answer: 185851.44

Step-by-step explanation:

We know the equation for money at a compounded interest is A = P(1+r)^t

A = total amount

P = initial principal balance

r = interest rate (decimal)

t = the amount of time in months divided by how often your interest gets compounded (in this case, 15/4)

Now we substitute everything in and voilà!

If you want to just get the interest, subtract the initial amount from the total amount. So it would be 55851.44.