Rs. 16000 was borrowed by a man from a bank where compound interest is

1.	Rs. 16000 was borrowed by a man from a bank where compound interest is computed quarterly. Annual interest rate is 10%. How much he has to pay after 9 months to clear his liabilities?
Answer» Amount borrowed = Rs 16000 Interest rate = 10% 9 Months = 3 quarterly years Amount to be repaired after 9 months = 16000 × (1 + \(\frac{2.5}{100}\))³ = 16000 × (\(\frac{102.5}{100}\))³ = 16000 × \(\frac{102.5}{100}\) × \(\frac{102.5}{100}\) × \(\frac{102.5}{100}\) = 17230.25

Rs. 16000 was borrowed by a man from a bank where compound interest is computed quarterly. Annual interest rate is 10%. How much he has to pay after 9 months to clear his liabilities?

Answer»

Amount borrowed = Rs 16000

Interest rate = 10%

9 Months = 3 quarterly years

Amount to be repaired after 9 months

= 16000 × (1 + \(\frac{2.5}{100}\))³

= 16000 × (\(\frac{102.5}{100}\))³

= 16000 × \(\frac{102.5}{100}\) × \(\frac{102.5}{100}\) × \(\frac{102.5}{100}\)

= 17230.25