4000o has taken a loan of1500 at a rate of 12 р.с.р.a. for 3 years.

1.	4000o has taken a loan of1500 at a rate of 12 р.с.р.a. for 3 years. If thepay to clear2. Sameerrainterest is compounded annually then how many rupees should hehis loan?
Answer» For compound interestA = P(1 + R/100)^n =12500(1 + 12/100)^3 =12500(1 + 3/25)^3 = 12500(28/25)^3 = 12500(1.12)^3 = 12500(1.404) = 17550 He has to pay Rs 17550 to close the loan

4000o has taken a loan of1500 at a rate of 12 р.с.р.a. for 3 years. If thepay to clear2. Sameerrainterest is compounded annually then how many rupees should hehis loan?

Answer»

For compound interestA = P(1 + R/100)^n =12500(1 + 12/100)^3 =12500(1 + 3/25)^3 = 12500(28/25)^3 = 12500(1.12)^3 = 12500(1.404) = 17550

He has to pay Rs 17550 to close the loan