Ramu borrowed Rs. 15625 from a finance company to buy scooter. If the

1.	Ramu borrowed Rs. 15625 from a finance company to buy scooter. If the rate of interest be 16% per annum compounded annually, what payment will he have to make after 2 ¼ years?
Answer» Given details are, Principal (p) = Rs 15625 Rate (r) = 16% Time (t) = 2 ¼ years By using the formula, A = P (1 + R/100 × 1 + R/100) = 15625 (1 + 16/100)² × (1 + (16/4)/100) = 15625 (1 + 16/100)² × (1 + 4/100) = 15625 (1.16)² × (1.04) = Rs 21866 ∴ Amount after 2 ¼ years is Rs 21866.

Ramu borrowed Rs. 15625 from a finance company to buy scooter. If the rate of interest be 16% per annum compounded annually, what payment will he have to make after 2 ¼ years?

Answer»

Given details are,

Principal (p) = Rs 15625

Rate (r) = 16%

Time (t) = 2 ¼ years

By using the formula,

A = P (1 + R/100 × 1 + R/100)

= 15625 (1 + 16/100)² × (1 + (16/4)/100)

= 15625 (1 + 16/100)² × (1 + 4/100)

= 15625 (1.16)² × (1.04)

= Rs 21866

∴ Amount after 2 ¼ years is Rs 21866.