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

Question

asked Jul 24, 2022 214k views

1 Answer

TechnoTony · Answer 1 · 2022-07-29T02:09:17+0000

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
$\$125,971.2$