Aman has taken a loan of ₹50,000 from a bank at the rate of 8% to be compounded annually. How much does he have to pay after 3 years? (Nearest to a ₹)
Answer & explanation
Correct answer: option 3
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
= 50000 [ 1 + \(\frac{8}{100}\) ]³
= 50000 × \(\frac{27}{25}\) × \(\frac{27}{25}\) × \(\frac{27}{25}\)
= 62985.6
= 62986 ( nearest to Rs. )