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Mr.X borrowed rupees 5120 at 12.5% p. a C. I At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him is?
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Mr.X borrowed rupees 5120 at 12.5% p. a C. I At the end of 3 yrs, the ...
Calculation of Interest Accrued


Given,
Principal amount (P) = Rs. 5120
Rate of interest (R) = 12.5%
Time period (T) = 3 years

Calculation of Compound Interest (CI)


Using the formula,

CI = P[(1+R/100)^T - 1]

CI = 5120[(1+12.5/100)^3 - 1]

CI = 5120[(1.125)^3 - 1]

CI = 5120[0.421]

CI = Rs. 2151.20

Calculation of Total Amount Repaid


Total amount repaid = Principal amount + Compound Interest

Total amount repaid = Rs. 5120 + Rs. 2151.20

Total amount repaid = Rs. 7271.20

Calculation of Interest Paid


Interest paid = Total amount repaid - Principal amount

Interest paid = Rs. 7271.20 - Rs. 5120

Interest paid = Rs. 2151.20

Therefore, the interest paid by Mr. X is Rs. 2151.20.
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Mr.X borrowed rupees 5120 at 12.5% p. a C. I At the end of 3 yrs, the ...
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Mr.X borrowed rupees 5120 at 12.5% p. a C. I At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid by him is?
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