Question

4. Rahim took a loan of Rs.20, 000 for 2 years at 12% per annum, the interest

being compounded annually. Find the amount at the end of 2 years that he has
to pay?​

Answer 1

Amount to be repayed= Rs. 25,088

Explanation:

Principal amount P =Rs.20,000

Compound interest= 12% per annum

No.of years t =2 yrs

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

Amount to be repayed= Rs. 25,088