Question

Shubhalaxmi took a loan of rs 18000 from the surya Finance to purchase a TV set. if the company charges compound interest at 12 % per annum during the first year and 12 1/2% per annum during the second year, how much will she have to pay after 2 years?

Answer 1

Answer:

Rs 22, 680

Step-by-step explanation:

For r =12%, P=Rs 18000

A =18000(1+12/100)^1= Rs 20,160

r=12.5%, P= Rs 20,160.

A=20000(1+12.5/100)^1= Rs 20,160 = Rs 22, 680

Answer 2

Shubhalaxmi will have to pay Rs 22,680 after 2 years.

Step-by-step explanation:

We are given that Shubhalaxmi took a loan of Rs 18000 from the Surya Finance to purchase a TV set.  

The company charges compound interest at 12% per annum during the first year and 12 1/2% per annum during the second year.

Let the Principal sum of money = P

Rate of interest = R

Time period = T

Amount of money = A

The formula for calculating the amount using compound interest is given by;

                 $\text{Amount} = \text{Principal} \times (1+ \text{Rate of interest})^{\text{Time}}$

                                             Or

                           $\text{A} = \text{P} \times (1+ \text{R})^{\text{T}}$

Firstly, we will calculate the amount of money she has to pay after 1 year, for that P = Rs 18000, R = 12% p.a. and T = 1 year

So,   $\text{A} = \text{P} \times (1+ \text{R})^{\text{T}}$

       $\text{A} = 18000 \times (1+ \frac{12}{100} )^{\text{1}}$  

       $\text{A} = 18000 \times (1.12 )^{\text{1}}$

       A  =  Rs 20,160.

Now, for calculating the amount of money she has to pay after 2 years, for that Principal sum of money will be = Rs 20,160, R = 12 1/2% p.a. and T = 1 year.

So,   $\text{A} = \text{P} \times (1+ \text{R})^{\text{T}}$

       $\text{A} = 20160 \times (1+ \frac{25}{2 \times 100} )^{\text{1}}$  

       $\text{A} = 20160 \times (1+ \frac{1}{8} )^{\text{1}}$

       $\text{A} = 20160 \times (\frac{9}{8} )$

       A  =  Rs 22,680.

Hence, Shubhalaxmi has to pay Rs 22,680 after 2 years.