Question

Mr. Lord borrowed $100,000 from a bank at a rate of 8% per annum for 3 years. Calculate the amount accruing for the loan

Answer 1

Answer:
`\$125,971.2`

Explanation:

Given

Principal amount
`P=\$100,000`

Rate of interest
`r=8\%`

Time period
`t=3\ yr`

Amount in compound interest is given by

`\Rightarrow A=P\left(1+r\%\right)^t\\\Rightarrow A=100,000(1+0.08)^3\\\Rightarrow A=\$125,971.2`

Thus, the amount accruing for loan is
`\$125,971.2`