Diya borrowed a sum of ₹25,000 from Abha for two years. If the rate of interest is 8% compounded annually, find the amount that Diya has to pay back.
₹29,160
The formula for compound interest is A = P(1 + r/n)^(nt), where P = ₹25,000, r = 0.08, t = 2 years, and n = 1 (since it's compounded annually). - A = 25000(1 + 0.08/1)^(1×2) = 25000(1.08)^2 = 25000 × 1.1664 = ₹29,160. Thus, the amount Diya has to pay back is ₹29,160.
Important Questions from Compound Interest
The certain sum amounts to Rs. 9,982.50 in \(2\frac{1}{2}\) years at 12% p.a., interest compounded 10-monthly. The sum (in Rs.) is:
The difference between the simple interest and the compound interest compounded annually on a certain sum of money for 2 years at a rate of 8% per annum is Rs. 16.80. Find the principle amount.
If a sum of ₹ 2000 is lent at 10% p.a. compound interest, what is the interest for the second year?
A sum becomes 5 times of itself in 3 years. at compound interest (interest is compounded annually). In how many years. will the sum becomes 125 times of itself?
If the compound interest on a certain sum of money for two years at 9% p.a. is Rs. 3,762, then the sum is:
