Question

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

Answer 1

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

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

time = n= 3years

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

Therefore, the interest paid by Ravi for payment after 3 years = Rs 143262.

Answer 2

principal =750000
rate of interest=6%
time=3 years

for 1st year
750000×6×1÷100
=45000
Amount =750000+45000
= 795000

now , for 2nd year
795000×6×1÷100
=47700
Amount =750000+47700
=842700

now, for 3rd year
842700×6×1÷100
=50562
amount =892700+50562
=893262
now, C.I.=892700-750000
=143262

therefore, Interest paid by Ravi if he makes payment to DDA after three year is 143262 ruppees