Question

Thomas took out a loan of 15000 rupees from a bank which changes 12% interest compounded annually after 2 year he paid back 10000 rupees to settle the loan how much should he pay at the end of three years

Answer 1

ANSWER

Amount borrowed = 15000

Interest for the first year

= 15000 ×  12 100 12100 = 1800 Loan for the second year

= 15000 + 1800 = Rs.16800 Interest for the second year = 16800 ×  12 100 12100 = 2016 Loan for the end of second year

= 16800 + 2016 = 18816 Amount payback at the end of second year

= 10000 Loan for the third year = 18816 – 10000 = 8816 Interest for the 3rd year

= 8816 ×  12 100 12100 = 1057.92 Amount to be repair at the end of third year

= 8816 + 1057.92 = Rs.9873.92Read more on

Answer 2

Answer:

The amount that he will pay at the end of 3 years is 9873.92

Step-by-step explanation:

The principal amount given is 15000

The amount is said to be compounded annually, the rate of interest given is 12%

The interest in first year=$\frac{P.1.R}{100} =\frac{15000.12}{100} =1800$

The amount after first year=15000+1800=16800

The interest in second year=$\frac{P.1.R}{100} =\frac{16800.12}{100} =2016$

The amount after second year=16800+2016=18816

Thomas pays 10000 back which leaves (18816-10000)=8816

The interest in third year=$\frac{P.1.R}{100} =\frac{8816.12}{100} =1057.92$

The amount Thomas will need to pay after 3 years=8816+1057.92=9873.92