Question
Download Solution PDFMariya borrowed 16,000 from Joseph at a 5% annual compound interest rate. What amount will she have to pay back at the end of two years and four months ?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Principal (P) = 16,000
Rate of interest (R) = 5% per annum
Time (T) = 2 years and 4 months = 2 + (4/12) = 2.3333 years
Formula Used:
Compound Interest formula: A = P(1 + R/100)T
Calculation:
Substituting the given values into the formula:
⇒ A = 16,000(1 + 5/100)2.3333
⇒ A = 16,000(1 + 0.05)2.3333
⇒ A = 16,000(1.05)2.3333
⇒ A = 16,000 × 1.120875
⇒ A = 17,934
The total amount Mariya has to pay back at the end of two years and four months is ₹17,934.
Last updated on Feb 11, 2025
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