Question

Shankar takes a loan of $10,000 at a compound interest rate of 10℅ per annum.Find the sum of money required to clean the debt at the end of 2 years.

Answer 1

Given, loan taken = $10,000

rate = 10 % per annum

time = 2yrs

Find the required sum:
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required sum = p [ 1 + (r / 100 ) ]^t

required sum =10,000 [ 1 + ( 10 /100 )]^2

required sum = 10,000 × (110/100 )^2

required sum = 10,000 × (11/ 10) × (11/ 10)

required sum = 100 × 11 × 11

required sum = $12100

therefore,

the total sum of money required to clean the debt at the end of 2 years

= $12100

Answer: sum = $12100

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Answer 2

Given,

loan taken = $10,000

rate = 10 % per annum

time = 2yrs

Find the required sum

required sum = p [ 1 + (r / 100 ) ]^t

required sum =10,000 [ 1 + ( 10 /100 )]^2

required sum = 10,000 × (110/100 )^2

required sum = 10,000 × (11/ 10) × (11/ 10)

required sum = 100 × 11 × 11

required sum = $12100

therefore,

the total sum of money required to clean the debt at the end of 2 years

= $12100

Answer: sum = $12100