3. Ahmed chacha borrowed Rs. 25,000 at
12 p.C.p.a for a year. What amount will
he have to return at the end of year?step by step exaplaintion
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3. Ahmed chacha borrowed Rs. 25,000 at
12 p.C.p.a for a year. What amount will
he have to return at the end of year?step by step exaplaintion
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Answer:
Ans. Rs. 28,000
Step-by-step explanation:
Formula for interest is
I=PxRxT
Where,
I = interest
P = principal amount (total amount taken)
R = rate of interest
T = time or tenure
According ro formula
I = 25000 x 12% x 1
= 25000 x 0.12 x 1
= 3000
So, I = Rs. 3000
Total amount to be returned is,
Interest + Principal amount
= 25000 + 3000
Which is Rs. 28,000
Note. Although Ahmed has taken loan on Compound interest but as the tenure is 1 year so he only has to repay on principal amount here.