Question 32

Ganesh took a loan of Rs.14000 to be paid after three years with Compound Interest at 10% per annum. How much total amount should he pay at the end of three years?

Solution

compound interest,  $$ amount = p( 1 + \frac{r}{100})^n $$

here p = 14000

n = 3 years

r% = 10 %

$$ amount = 14000(1 + \frac{10}{100})^3 $$

                 = $$ 14000 ( \frac{11}{10} )^3 $$

                = 18634


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