Reena took a loan of 20000 for 2 year at the 12% per annum the interest being compounded annually find the amount at the end of 2 years that he has to pay
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Answer:
Rs.25,088
Step-by-step explanation:
Principal amount P =Rs.20,000
Compound Interest rate r =12% per annum =12/100=0.12
No.of years t =2 yrs
No.of times compounded n = 1 (since compounded annually)
Amount to be paid at the end of 2 years A=P (1+r/n)^nt
=20,000(1+(0.12/1))^(1*2)
=20,000(1.12)^2
= Rs.25,088
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