Anand obtained a loan of ₹ 125000 from the Allahabad bank for buying

1.	Anand obtained a loan of ₹ 125000 from the Allahabad bank for buying computers. The bank charges compound interest at 8% per annum, compounded annually. What amount will have to pay after 3 years to clear the debt?
Answer» Given: Present value= ₹ 125000 Interest rate= 8 % per annum Time= 3 years To find the amount we have the formula, Amount (A) = P (1+(R/100))ⁿ Where P is present value, r is rate of interest, n is time in years. Now substituting the values in above formula we get, ∴ A = 125000 (1 + 8/100)³ ⇒ A = 125000 (1+108/100)³ ⇒ A = 125000 (108/100) (108/100) (108/100) ⇒ A = 125000 × 1259712/1000 = 1259712/8 ⇒ A = ₹ 157464 Anand has to pay ₹ 157464

Anand obtained a loan of ₹ 125000 from the Allahabad bank for buying computers. The bank charges compound interest at 8% per annum, compounded annually. What amount will have to pay after 3 years to clear the debt?

Answer»

Given:

Present value= ₹ 125000

Interest rate= 8 % per annum

Time= 3 years

To find the amount we have the formula,

Amount (A) = P (1+(R/100))ⁿ

Where P is present value, r is rate of interest, n is time in years.

Now substituting the values in above formula we get,

∴ A = 125000 (1 + 8/100)³

⇒ A = 125000 (1+108/100)³

⇒ A = 125000 (108/100) (108/100) (108/100)

⇒ A = 125000 × 1259712/1000 = 1259712/8

⇒ A = ₹ 157464

Anand has to pay ₹ 157464