Question

Ramesh lent 20.000 to his friend at the rate of 8% p.a. interest being compounded annually. He
much money will he get back from his friend at the end of 2 years 9 months?​

Answer 1

Answer:

24714.10

Step-by-step explanation:

Let's start with a quick definition.

The formula for compound interest is $A = P(1+\frac{r}{n} )^{nt}$ where P, r, n, and t for this problem are the following:

P - principal balance (starting value)

r - interest rate

n - number of times interest is compounded per year

t - number of years

We are given that P = 20000, r = 0.08 (8%) and n = 1 (annual compounding).

Let's substitute the values into the equation.

$A = 20000(1+0.08)^{t}$

Now we must calculate the time in years. There are 12 months in a year, so 9 months is $\frac{3}{4}$ of a year. 2 years 9 months then equates to a total of 2.75 years. This is our value for t.

Now let's complete the equation:

$A = 20000(1+0.08)^{2.75} = 24714.10$

At the end of 2 years 9 months, Ramesh should receive 24714.10

Answer 2

first calculating interest for 2 year.

CI (amount )= p(1+r/100)ⁿ

CI (amount ) = 20000(1+8/100)²

CI (amount) = 20000(108/100)²

CI (amount) = 20000(108/100)×(108/100)

CI (amount) = 2×108×108

CI (amount) = 23328

CI = amount - principal

CI = 23328-20000

CI = ₹3328

this for two year

now for 9 months

rate = 8/4 = 2% per quarter

in year there are 12 months so 9/12× 4 = 3 quarter

CI ( amount ) = p(1+r/100)ⁿ

CI ( amount ) = 20000(1+2/100)³

CI ( amount ) = 20000(102/100)³

CI(amount)=20000 (102/100)(102/100)(102/100)

CI (amount) = 2 × 102 ×102 × 1.02

CI (amount) = 21224.16

CI = amount - principal

CI = 21224.16 - 20000

CI = 1224.16

Total interest = 3328 + 1224.16 = 4552.16

he has to pay money=20000 + 4552 .16= ₹24552.16