SSC (English Medium) Class 8Maharashtra State Board
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# Sameerrao Has Taken a Loan of ₹12500 at a Rate of 12 P.C.P.A. for 3 Years. If the Interest is Compounded Annually Then How Many Rupees Should He Pay to Clear His Loan? - SSC (English Medium) Class 8 - Mathematics

ConceptApplication of Formula for Compound Interest

#### Question

Sameerrao has taken a loan of ₹12500 at a rate of 12 p.c.p.a. for 3 years. If the interest is compounded annually then how many rupees should he pay to clear his loan?

#### Solution

Here, P = ₹ 8000; R = 10 1/2 % ; N = 2 years

A = P (1 + R/100)^N

= 12500 (1 + 12/100)³

= 12500 (1 + 3/25)³

= 12500 (28/25)³

= 17561.60 Rupees

Hence, he should pay an amount of  ₹ 17561.60 to clear his loan.

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#### APPEARS IN

Balbharati Solution for Balbharati Class 8 Mathematics (2019 to Current)
Chapter 14: Compound interest
Practice Set 14.1 | Q: 2 | Page no. 90
Solution Sameerrao Has Taken a Loan of ₹12500 at a Rate of 12 P.C.P.A. for 3 Years. If the Interest is Compounded Annually Then How Many Rupees Should He Pay to Clear His Loan? Concept: Application of Formula for Compound Interest.
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