Question

Jayanti borrowed a sum of 16000 to purchase a washing machine at the rate of 5% per annum compounded annually for two years. Calculate the amount she will have to pay after two years and also find the interest.

Answer 1

Explanation:

Amount = P(1 + r%)^n

`= 16000*(1 + (5)/(100))^(2)\\\\= 16000 * (1 + 0.05)^(2)\\\\= 16000 * (1.05)^(2)\\\\= 16000 * 1.1025\\= 17640`

Interest = Amount - Principal

= 17640 - 16000

= 1640