Question

Ramesh borrowed 12,000 from Raman for 2 years at 12.5% pe
amount payable by Ramesh at the end of 2 years.​

Answer 1

Step-by-step explanation:

Payable amount = Principal amount + Interest;

Principal amount = 12000;

Rate of interest = 12.5;

Time = 2 yr;

Simple interest = (12000*12.5*2)/100;

S. I. = 3000;

So payable amount = 12000+3000;

= 15000

Answer 2

Amount payable by Ramesh at the end of 2 years is 15,187.5.

Step-by-step explanation:

We are given that Ramesh borrowed Rs 12,000 from Raman for 2 years at 12.5% per annum.

Assuming compound interest is used here.

Let P = Principal sum of money

     R = Rate of interest per annum

     T = Time period

     A = Amount of money

Now, the formula for calculating amount using compound interest is given by;

                $\text{Amount} = \text{Principal} \times (1+\text{Rate of Interest})^{\text{Time}}$

                                       OR  

                              $\text {A} = \text{P}\times (1+\text{R})^{\text{T}}$

Now, we are given in question P = Rs 12,000 , R = 12.5% p.a. and T = 2 years.

So,              $\text {A} = \text{P}\times (1+\text{R})^{\text{T}}$  

                  $\text {A} = 12,000\times (1+\frac{12.5}{100}) ^{{2}}$

                  $\text {A} = 12,000\times (1+0.125) ^{{2}}$

                   $\text {A} = 12,000\times (1.125) ^{{2}}$

                   A  =  Rs 15,187.5

Hence, the amount payable by Ramesh at the end of 2 years is Rs 15,187.5.