Sanjay borrowed rupees 20000 from Punjab National Bank for two years to buy a second hand computer if the rate of interest is 12% per annum calculate the compound interest he has to pay at the end of 2 years
Answers
P=Rs 20000
R=12%
T=2 years
A=?
Since,A=P(1+r/100)^n
= Rs 20000(1+12/100)^2
= Rs20000(112/100)^2
=Rs20000×112/100×112/100
=Rs 25088
Now,Since CI=A-P
=Rs 25088-Rs 20000
=Rs 5088
Method 2:
For 1st year
P=Rs 20000
R=12%
T=1 years
SI=?
Since,SI=PRT/100
=Rs 20000×12×1/100
=Rs 2400
A=P+SI
=Rs 20000+Rs 2400
=Rs 22400
For 2nd year
P=Rs 22000
R=12%
T=1 years
SI=?
Since,SI=PRT/100
=Rs 22400×12×1/100
=Rs 2688
A=P+SI
= Rs 22400+2600
=Rs 25088
Now,Since CI=Final amount-Orignal principal
=Rs 25088-Rs 20000
=Rs 5088
Hence,The compound interest need to paid by Sanjay at the end of 2 years=Rs 5088
Answer:
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