#### 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.

Is there an error in this question or solution?

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.