1.

Sameerrao has taken a loan of `12500 at a rate of 12 p.c.p.a. for 3 years. If the interest is compounded annually then how many rupees should he pay to clear his loan?

Answer»

If Sameerrao has taken a loan of `12500 at a rate of 12 p.c.p.a. for 3 years and the INTEREST is compounded annually then should he pay to clear his loan can be calculated as shown below:

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

or, we know the values of P, r, n.

P = RS 12500, r = 12% and n = 3yrs.

CI = 12500{1 + (12/100)^3

or, 12500{(112 x 112 x 112)/(1000000)}

or, Rs 17561.6 (Ans)

Therefore, Sameerrao has pay to pay Rs 17561.6 to clear his loan


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