Ratna obtained a loan of ₹25000 from the bank to renovate her house. If the rate of interest is 8% per annum, what amount will she have to pay to the bank after 2 years to discharge her debt.
₹29160
check:
amount = 25000(1.08)^2 = 29160
you are correct
you are pelu
To calculate the amount Ratna will have to pay to the bank after 2 years to discharge her debt, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the total amount to be paid
P is the principal amount (the loan amount)
r is the rate of interest per period (in this case, per annum)
n is the number of times the interest is compounded per year
t is the number of years
In this case, Ratna obtained a loan of ₹25,000 from the bank, the rate of interest is 8% per annum, and the loan is compounded annually. We want to find the total amount to be paid after 2 years, so t = 2. Plugging the values into the formula:
A = 25000(1 + 8/100)^(1*2)
Now we can simplify the equation:
A = 25000(1 + 0.08)^2
A = 25000(1.08)^2
A = 25000 * 1.1664
A = ₹29,160
Therefore, Ratna will have to pay ₹29,160 to the bank after 2 years to discharge her debt.