Question

Tanisha borrowed a sum of rupees 75000 from bank for 2 years at 14% p.m. compound interest find the amount payable by Tanisha after 2 years by using simple interest formula

Answer 1

Answer:

Rs 97,470

Step-by-step explanation:

Principal amount = Rs 75,000

Period = 2 years

Interest = 14% p.a.

Find the amount at the end of 1 year:

Interest = 14% x Rs 75,000 = 0.14 x 75000 = Rs 10,500

Total amount = 75000 + 10500 = Rs 85,500

Find the amount at the end of 2 years:

Interest = 14% of Rs 85,500 = 0.14 x 85,500 = Rs 11,970

Total amount = 85,500 + 11,970 = Rs 97,470

Answer: The amount is Rs 97,470