Ratna obtained a loan of Rs 25000 from the Syndicate Bank to renovate her house. If the rate of interest is 8% per annum, what amount will she have to pay to the bank after 2 years to discharge her debt?

Open in App

Solution

Principal for the first year = Rs. 25000
Interest for the first year = Rs. 25000×8×1100= Rs. 2000
Amount at the end of the first year = Rs. (25000 +2000) = Rs. 27000
Principal for the second year = Rs. 27000
Interest for the second year = Rs. 27000×8×1100= Rs. 2160
Amount at the end of the second year = Rs. (27000 +2160) = Rs. 29160
Therefore, Ratna has to pay Rs. 29160 after 2 years to discharge her debt.

Suggest Corrections

Similar questions

Ratna obtained a loan of Rs 25000 from the Syndicate Bank to renovate her house. If the rate of interest is $8 %$ per annum, what amount will she have to pay to the bank after 2 years to discharge her debt ?

Q. To renovate his shop Mahendra obtained a loan of

R s . 10000

from a bank. If the rate of interest is

5 %

per annum compounded annually, calculate interest annually that he will have to pay for

3

years.

Q. Anand obtained a loan of Rs 125000 from the Allahabad Bank for buying computers. The bank charges compound interest at 8% per annum, compounded annually. What amount wil he have to pay after 3 years to clear the debt?

By using the formula, find the amount and compound interest on:

Anand obtained a loan of Rs. 125000 from the Allahabad Bank for buying computors. The bank charges compound interest at $8 %$ per annum compounded annually. What amount will he have to pay after 3 years to clear the debt ?

Q. Swati borrowed

R s . 40960

from a bank to buy a piece of land. If the bank charges

12 \frac{1}{2}

% per annum compound half-yearly, what amount will she have to pay after

1 \frac{1}{2}

years? Also find the interest paid by her.

Join BYJU'S Learning Program