Question

A man borrowed Rs 8000 from a bank at 8% per annum. Find the amount he has to pay after $4\frac{1}{2}$ years.

Answer 1

Principal amount (P) = Rs 8000
Time period (T) = $4\frac{1}{2}=\frac{9}{2}\mathrm{years}$
Rate of interest (R) = 8% p.a.
Interest = $\frac{P\times R\times T}{100}=\frac{8000\times 8\times 9}{100\times 2}$ = Rs 2880

Total amount paid after $4\frac{1}{2}$ years = Principal amount + Interest = Rs 8000 + Rs 2880
= Rs 10880