Question

to renovate his ice cream parlour Pratham took a loan of 80000 rupees from the bank if the bank charges interest at the rate of 5% per annum compounded annually find the amount compound interest paid by Pratham at the end of 3 years

Answer 1

Answer:

The answer is 92,608 Rs to clear the loan.

Step-by-step explanation:

Principal amount, P = 80000 Rs.

Rate of interest, R = 5% per annum

             Time, n     = 3 years  

The amount including the compound interest is calculated using the following formula.

A = P (1 + r/100)^n

A =  80000  (1 + 5/100)^3

A = 80000 ( 100 + 5/100)^3

A = 80000 (105/100)^3

A =80000 (1.05)^3

A = 80000 x 1.1576

A = 92,608 Rs

Pratham has to pay 92,608 Rs to clear the loan.

Answer 2

Answer:

Rs. 12610

Step-by-step explanation:

Amount = 80000 (1+5/100

Amount = 80000 (100+5/100)³

Amount = 80000 (105/100)³

Amount = 80000 (1.05)³

Amount = 80000 × 1.1576

Amount = Rs. 92610

Compound Interest = Rs. (92610 – 80000)

Compound Interest = Rs. 12610