Rahman lent Rs. 16000 to Rasheed at the rate of 12 1/2%per annum compo

1.	Rahman lent Rs. 16000 to Rasheed at the rate of 12 1/2%per annum compound interest. Find the amount payable by Rasheed to Rahman after 3 years.
Answer» Given, Principal = Rs.16000 Rate \(={12}\frac{1}{2}\text%\) per annum \(=\frac{25}{2}\text%\) Time = 3 years Hence, Compound interest \(={P}[({1}+\frac{R}{100})^T-{1}]\) \(={16000}[({1}+\frac{25}{(2\times100)})^3-{1}]\) \(={16000}[(\frac{9}{8})^3-{1}]\) \(={16000}\times\frac{217}{512}\) =Rs. 6781.25 So, Amount payable by Rasheed to Rahman after 3 years = Rs(16000+6781.25) = Rs.22781.25

Rahman lent Rs. 16000 to Rasheed at the rate of 12 1/2%per annum compound interest. Find the amount payable by Rasheed to Rahman after 3 years.

Answer»

Given,

Principal = Rs.16000

Rate \(={12}\frac{1}{2}\text%\) per annum \(=\frac{25}{2}\text%\)

Time = 3 years

Hence,

Compound interest

\(={P}[({1}+\frac{R}{100})^T-{1}]\)

\(={16000}[({1}+\frac{25}{(2\times100)})^3-{1}]\)

\(={16000}[(\frac{9}{8})^3-{1}]\)

\(={16000}\times\frac{217}{512}\) =Rs. 6781.25

So,

Amount payable by Rasheed to Rahman after 3 years = Rs(16000+6781.25) = Rs.22781.25