Question

Sindhu took a loan of Rs.2,00,000 at the rate of 10% p.a. for 5 years from a bank. What is the amount of interest paid by her?​

Answer 1

Answer:

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For the first year,

P=80000,R=10%, T=1

Interest

=

100

P⋅R⋅T

=

100

(80000⋅10⋅1)

=8000

Amount

=Interest+Principle

=80000+8000

=88000

For second-year principle will be the amount of the previous year (since interest is compounded annually).

P=88000,T=0.5,R=10%.

Interest

=

100

P⋅R⋅T

=

100

(88000⋅10⋅0.5)

=4400

Total amount=88000+4400

=Rs. 92400

Answer 2

Answer:

For the first year,

P=80000,R=10%, T=1

Interest  =  100

P⋅R⋅T  =  100

(80000⋅10⋅1)  =8000

Amount  =Interest + Principle

=80000+8000

=88000

For second-year principle will be the amount of the previous year (since interest is compounded annually).

P=88000,T=0.5,R=10%.

Interest  =  100

P⋅R⋅T  =  100

(88000⋅10⋅0.5)  =4400

Total amount=88000+4400

=Rs. 92400