Neerav borrows loan of Rs. $20, 000$ at $8 %$ for $3$ years at compound interest from a finance company, then at the end of $3$ years how much total amount will Neerav have to return to the finance company?

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Solution

Amount $= P r i n c i p a l (1 + \frac{R A t e}{100})^{t i m e} = 20000 (1 + \frac{8}{100})^{3} = 20000 (1 + \frac{2}{25})^{3} = 20000 \times \frac{27}{25} \times \frac{27}{25} \times \frac{27}{25} = 25194.24$

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Neerav borrows loan of Rs. 20,000 at 8% for 3 years at compound interest from a finance company, then at the end of 3 years how much total amount will Neerav have to return to the finance company?

Amount=Principal(1+RAte100)time=20000(1+8100)3=20000(1+225)3=20000×2725×2725×2725=25194.24

Neerav borrows loan of Rs. $20, 000$ at $8 %$ for $3$ years at compound interest from a finance company, then at the end of $3$ years how much total amount will Neerav have to return to the finance company?

Amount $= P r i n c i p a l (1 + \frac{R A t e}{100})^{t i m e} = 20000 (1 + \frac{8}{100})^{3} = 20000 (1 + \frac{2}{25})^{3} = 20000 \times \frac{27}{25} \times \frac{27}{25} \times \frac{27}{25} = 25194.24$