Question

Ravi purchased a house from DDA on credit if the cost of the house is 750000 and DDA charges interest at 6% per annum compounded annually find the interest paid by Ravi if he makes payment to DDA after 3 years​

Answer 1

≡QUESTION≡

Ravi purchased a house from DDA on credit if the cost of the house is 750000 and DDA charges interest at 6% per annum compounded annually. Find the interest paid by Ravi, if he makes the payment to DDA after 3 years​.

║⊕ANSWER⊕║

GIVEN

Cost of the house - Rs 7,50,000 (P)

Interest charged by DDA per annum = 6%(Rate of Interest)

Time = n= 3 years

A = P[( I + (R/100)]n

   = 7,50,000 (( I + (6/100))3

   = 7,50,000 (106/100)3

   = 7,50,000 (53/50)3

    =( 750000 x 53 x 53 x 53) / (50 x 50 x 50)

    = 6 x 53 x 53 x 53

    = 893262

Compound Interest = A - P

                                  = (893262 - 750000)

                                   = 143262

∴ The interest paid by Ravi after 3 years = Rs 143262.