Question

Rameez borrowed Rs. 20,000 from a bank at the rate 5% p.a compounded annually. What amount will he pay at the end of three years to clear the loan?

Answer 1

23000

Step-by-step explanation:

If you multiply 20,000 * 0.05 (the percentage of the rate) you get 1000

This means that for 3 years he will pay an interest of 3000, plus the original loan 20000 which means he will pay 23000 :D