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Karthik borrows 1200 from junaid for 2 years for 20% rate of interest how much karthik should play to compound annually

User Lovis
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1 Answer

3 votes

Answer:

1728

Explanation:

1200 borrowed for 2 years at 20% compounded annually ;

Using the compound interest formula :

A = P(1 + r/n)^nt

P = 1200 = principal

Time, t = 2 years

Rate, r = 20% = 0.2

A = 1200(1 + 0.2)^2

A = 1200(1.2)^2

A = 1200 * 1.44

A = 1728

Final amount to be repayed = 1728

User OganM
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6.0k points