Question

Can you calculate?

Leela took a loan of Rs 50000 from the Cooperative Bank. The interest rate is 12%. How much should she pay back after 2 years?

Answer 1

Amount of loan, p = Rs.50000

Rate of interest, r = 12%

Number of years, n = 2

We know that the interest can be calculated using the formula

On substituting the values of p, r and n, we get

Thus, the interest is Rs.12000.

Amount to be paid after 2 years = Rs.50000 + Rs.12000 = Rs.62000