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Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is?
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Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money w...
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Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money w...
Calculating Compound Interest:
To calculate the compound interest, we use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (the initial amount of money borrowed)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years the money is borrowed for
In this case:
P = 5,120
r = 12% = 0.12
n = 1 (compounded annually)
t = 3 years
Plugging in these values, we get:
A = 5,120(1 + 0.12/1)^(1*3)
A = 5,120(1 + 0.12)^3
A = 5,120(1.12)^3
A = 5,120(1.404928)
A = 7,202.22
So, the total amount repaid after 3 years is $7,202.22.
Calculating Interest Paid:
To find the amount of interest paid, we subtract the principal amount from the total amount repaid:
Interest = Total amount repaid - Principal
Interest = $7,202.22 - $5,120
Interest = $2,082.22
Therefore, Mr. X paid $2,082.22 in compound interest over the 3-year period.
To calculate the compound interest, we use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (the initial amount of money borrowed)
r = the annual interest rate (in decimal form)
n = the number of times that interest is compounded per year
t = the number of years the money is borrowed for
In this case:
P = 5,120
r = 12% = 0.12
n = 1 (compounded annually)
t = 3 years
Plugging in these values, we get:
A = 5,120(1 + 0.12/1)^(1*3)
A = 5,120(1 + 0.12)^3
A = 5,120(1.12)^3
A = 5,120(1.404928)
A = 7,202.22
So, the total amount repaid after 3 years is $7,202.22.
Calculating Interest Paid:
To find the amount of interest paid, we subtract the principal amount from the total amount repaid:
Interest = Total amount repaid - Principal
Interest = $7,202.22 - $5,120
Interest = $2,082.22
Therefore, Mr. X paid $2,082.22 in compound interest over the 3-year period.
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Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is?
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Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is?.
Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. X borrowed 5,120 at 12 % p.a C.I. At the end of 3 yrs, the money was repaid along with the interest accrued. The amount of interest paid is?.
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