Arun took a loan of Rs 390625 from Kuber Finance. If the company charges interest at $16 %$ per annum, compounded quarterly, what amount will discharge his debt after one year?

Open in App

Solution

$Amount taken from finance company (P) =Rs. 390625 Rate of interest (R) = 16 % p . a . o r 4 % quarterly Period (n) =1 year or 4 quarterly ∴ Amount (A) =P {(1 + \frac{R}{100})}^{n} = 390625 {(1 + \frac{4}{100})}^{4} = R s . 390625 \times {(\frac{26}{25})}^{4} = R s . 390625 \times \frac{26}{25} \times \frac{26}{25} \times \frac{26}{25} \times \frac{26}{25} = R s . 456976$

Suggest Corrections

171

Similar questions

Q. Arun look a lone of

R s . 390625

from Kuber Finance. If the company charges interest at

16

% per annum, compound quarterly, what amount will charge his debit after one year?

Q. Michael borrowed Rs 16000 from a finance company at 10% per annum, compounded half-yearly. What amount of money will discharge his debt after

1 \frac{1}{2}

years?

By using the formula, find the amount and compound interest on: Subhalaxmi took a loan of Rs. 18000 from Surya Finance to purchasea TV set. If the company charges compound interest at $12 %$ per annum during the first year and $12 \frac{1}{2} %$ per annum during the second year, how much will she have to pay after 2 years ?

Q. Shubhalaxmi took a loan of Rs 18000 from surya Finance to purchase a TV set. If the company charges compound interest at 12% per annum during the first year and

12 \frac{1}{2} %

per annum during the second year, how much will she have to pay after 2 years?

Q. Rohit took a loan of Rs 20000 to purchase a LCD TV set from a finance company. He promised to make the payment after three years. The company charges compound interest at the rate of 10% per annum for the same. Suddenly the company announced the rate of interest as 15% per annum for the last one year of the loan period. What extra amount will Rohit pay due to this announcement of the new rate of interest?

Join BYJU'S Learning Program

Arun took a loan of Rs 390625 from Kuber Finance. If the company charges interest at 16% per annum, compounded quarterly, what amount will discharge his debt after one year?

Amount taken from finance company (P) =Rs. 390625Rate of interest (R) =16% p.a. or 4% quarterlyPeriod (n) =1 year or 4 quarterly∴ Amount (A) =P(1+R100)n=390625(1+4100)4=Rs. 390625×(2625)4=Rs. 390625×2625×2625×2625×2625=Rs. 456976

Arun took a loan of Rs 390625 from Kuber Finance. If the company charges interest at $16 %$ per annum, compounded quarterly, what amount will discharge his debt after one year?