Question

Ramani borrows Rs.25000 for 180 days at 9% of annual interest compounded daily. How much will she owe at the end of 180 days?​

Answer 1

Amount (A) = Rs. 26,134.43819

Explanation:

Ramani borrows Rs. 25,000 for 180 days at 9% annual interest compounded daily.

Principal (P) = Rs. 25,000

Rate (r) = 9% annual interest = 0.09

Number of times interest applied per year (n) = 365 days

Number of time periods in 1 year (t) = 180/365

Compound interest formula;

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

A = 25,000(1 +
`(0.09)/(365))^(365(180/365))` = Rs. 26,134.43819