Question

Chirag borrows $Rs1,50,000$ at $11\%$ are for $2$ years from a 'Co-operative Society' to go foreign at compound interest. At last how much compound interest will Chirag have to pay?

Answer 1

Interest rate $=11\%$

Amount borrow $=Rs.1,50,000$ = principal amount

Compound interest after $1year$

$=\frac{11}{100}\times 1,50,000$

$=Rs.16500$

Principal amount $=1,50,000+16,500$

$=Rs.1,66,500$

Compound interest $=\frac{11}{100}\times 1,66,500$

$=Rs.18,315$

Total interest to be paid $=16500+18315$

$=Rs.34,815$