Question
Mr. Kalra borrowed ₹1,35,000 to meet the expenses of
his son's education. If the rate of interest is 12% per annum compounded annually, then how much amount will he have to make after 2 years and 3 months to settle the account?Solution
P=135000. Interest rate =12%. Counting for interest rate - Compound interest in first two year – =12+12+144/100 =25.44% And interest for the next 3 months – =12/4=3% So now the total CI for next year- =25.44+3+(25.44×3)/10 =28.44+0.7632 =29.2032% Final CI = 135000×29.2032/100 =39424.32 Amount =135000+39424.32 =174424.32
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