Question

To renovate his shop Anurag obtain a loan of rupees 80000 from a bank if the rate of interest at 5% per annum is compounded annually calculate the compound interest that Anurag will have to pay after 3 years

Answer 1

Answer:

Rs. 12,610

Step-by-step explanation:

P = Rs.80000

r =5%

n = 3 years

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

= 80000 (1+5/100)^3

= 80000 (1+1/20)^3

= 80000( 21/20)^3

= 80000 ×21/20 ×21/20 ×21/20

= 92,610

CI = A -P

= 92610 - 80000

= 12,610