Question

Seema took a loan of Rs.3,00,000 at 9% rate of interest for 2 years to purchase a motorcar from Shaikh Finance Company' at compound interest. At last how much total amount will she have to pay?

Answer 1

Solution :

Principal ( P ) = Rs 300000

Rate of interest ( r ) = 9%

Time ( t ) = 2 years

Number of times Interest paid ( n ) = 2

Amount ( A ) = P( 1 + r/100 )ⁿ

= 300000( 1 + 9/100 )²

= 300000 ( 109/100 )²

= 300000 × ( 109/100 )( 109/100 )

= 30 × 109 × 109

= Rs 356430

Therefore ,

Seema has to pay Rs 3,56,430 at the

end of 2 years.

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