Rashmi's family was financially not sound. In order to meet the expenses of her marriage, her parents took a loan of 5000 rupees from a money lender at the rate it of 10% compounded annually for 3 years. How much money will they have to repay the lender at the end of 3 years ?
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● The total amount of money that Rashmi family have to repay the lender at the end of 3 years is 66550 rupees
Principal amount borrowed by Rashmi family = 5000 rupees
● Time taken to repay the amount = 3 years
● Rate of interest = 10
Compound interest = P*(1+[r/100])^t
= 5000 (1.1) ^ 3
= 5000 * 1.331
= 66550 rupees
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