Question

Sania took a loan of ₹16,000 against her insurance policy at the rate of 12.5% per annum compounded
annually. Find the compound interest payable by her after 3 years.​

Answer 1

Answer:

=Rs 6781.25

Step-by-step explanation:

Given details are,

Principal (p) = Rs 16000

Rate (r) = 12 ½ % = 12.5%

Time = 3years

By using the formula,

A = P (1 + R/100) n

= 16000 (1 + 12.5/100)³

= 16000 (112.5/100)³

= Rs 22781.25

∴ Compound Interest = A – P

= Rs 22781.25 – Rs 16000

= Rs 6781.25