Question

Rs 90,000 borrowed at 5.5% p.a. for 3 years. Find the amount to be paid at the end of third

year.​

Answer 1

Step-by-step explanation:

For the first year, on interest being compounded at R=12 %, we have

Amount=P(1+

100

R

)

N

=90,000×(1+

100

12

)

1

=90,000×1.12=Rs.1,00,800

For the second year, P=Rs.1,00,800 on interest being compounded at R=15 %, we have

Amount=P(1+

100

R

)

N

=Rs.1,00,800×(1+

100

15

)

1

=Rs.1,00,800×1.15=Rs.1,15,920

For the third year, P=Rs.1,15,920 on interest being compounded at R=20 %, we have

Amount=P(1+

100

R

)

N

=Rs1,15,920×(1+

100

20

)

1

=Rs.1,15,920×1.20=Rs.1,39,104