Question

Ravi obtained a loan of Rs.125000 from a bank. The bank charges 8% compound interest per annum, compounded annually. What amount will he have to pay at the end of 3 years to clear his debt.

Answer 1

P= ₹125000
R= 8%
T= 3 years
A= P*(100+R/100)^T
= 125000*(100+8/100)^3
= 125000*(108/100)^3
= 125000*(108/100*108/100*108/100)
= 125000*27/25*27/25*27/25
= 8*27*27*27
= ₹ 1,57,464
Compound interest= A-P
= ₹ 1,57,464 - ₹125000
= ₹ 32,464
I hope this helps you

Answer 2

$\sf{\underline{\boxed{\large{\blue{\mathsf{Solution}}}}}}$

$\sf{\bold{\green{\underline{\underline{Given}}}}}$

• Principle = Rs. 125000
• Rate = 8%
• Time = 3 years

_______________________

$\sf{\bold{\green{\underline{\underline{To\:Find}}}}}$

• Amount = ???

______________________

$\sf{\bold{\green{\underline{\underline{Solution}}}}}$

$\sf{\red{\boxed{\bold{Amount = P ( 1 +\dfrac{r}{10})^t}}}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = 125000 ( 1 + \dfrac{8}{100})^3}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = 125000 ( \dfrac{100 + 8}{100})^3}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = 125000 ( \dfrac{108}{100})^3}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = 125000 ( \dfrac{108\times 108 \times 108}{100 \times 100 \times 100})}}$

⠀⠀

: $\sf\implies\: {\bold{ Amount = 1250 ( \dfrac{108\times 108 \times 108}{100 \times 100 })}}$

⠀⠀

: $\sf\implies\: {\bold{ Amount = 125( \dfrac{108\times 108 \times 108}{100 \times 10})}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = 125 ( \dfrac{108\times 11664}{1000})}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = 125( \dfrac{1259712}{1000})}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = ( \dfrac{157464000}{1000})}}$

⠀⠀⠀⠀

: $\sf\implies\: {\bold{ Amount = Rs. 157464}}$

______________________

$\sf{\bold{\green{\underline{\underline{Answer}}}}}$

• Rs. 125000 will amount to Rs.157464 at 8% per annum in 3 years