1.

To start a business Shalaka has taken a loan of `8000 at a rate of 10 1/2 p.c.p.a. After two years how much compound interest will she have to pay?

Answer»

Hi ,

It is given that ,

PRINCIPAL ( P ) = Rs 8000

Rate of interest ( R ) = 10½ % p.a = 21/2 yrs

Time ( T ) = 2 years

number of times interest paid = n = 2

Amount = A

A = P( 1 + R/100 )ⁿ


A = 8000 ( 1 + 21/200 )²


A = 8000 ( 221/200 )²


A = ( 8000 × 48841 )/ 40000

A= Rs 9768.20

Compound Interest ( C . I ) = A - P

= Rs 1768.20

I hope this HELPS you.

: )


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