Question

sameerrao has taken a loan of 12500at rate of 12 p.c.p.a for 3years If the intrest is compound annually then how many rupees should be pay to clear his loan p=12500 R=12 N=3 A=?​

Answer 1

Dear student:

Solution:

Formula for compound interest is,when calculated annually =

$P (1+\frac{r}{100})^{n}$

here P = Principal amount = 12,500 Rs

r = rate in % = 12%

n= number of year = 3 Years

$Amount=12500 \bigg(1+\frac{12}{100}\bigg)^{3}$

$Amount=12500 \bigg(\frac{100+12}{100}\bigg)^{3}$

$Amount=12500 \bigg(\frac{112}{100}\bigg)^{3}$

$Amount=12500 \bigg(\frac{112}{100}\bigg) \bigg(\frac{112}{100}\bigg) \bigg(\frac{112}{100}\bigg)\\ \\ \\ =\frac{17,561,600,000}{1,000,000} \\ \\ \\ =17,561.6 Rs$

So, The total amount sameera rao has to returned : 17,561.60 Rupees ( including principal amount and interest)

Hope it helps you.