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Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest?
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Mohit Anand borrows a certain sum of money from the AMS bank at 10% pe...
Mohit Anand borrows a certain sum of money from the mindworkzz bank at 10% per annum at compound interest. The entire debt is discharged in full by mohit anand on payment of two equal amounts of ` 1000 each, one at the end of the first year and the other at the end of the second year.
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Mohit Anand borrows a certain sum of money from the AMS bank at 10% pe...
Calculating Compound Interest
Compound interest is calculated using the formula:
A = P(1 + r/n)^(nt)
where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial sum of money borrowed).
- r is the annual interest rate (in decimal form).
- n is the number of times that interest is compounded per year.
- t is the number of years the money is borrowed for.
Given Information
Let's assume Mohit Anand borrowed Rs. 10,000 from AMS bank at an annual interest rate of 10% compounded annually. The loan term is 2 years.
Calculating Compound Interest
Using the formula mentioned earlier, we can calculate the amount Mohit will have to repay after 2 years:
A = 10000(1 + 0.10/1)^(1*2)
A = 10000(1 + 0.10)^2
A = 10000(1.10)^2
A = 10000(1.21)
A = 12100
Calculating the Compound Interest
The compound interest can be calculated by subtracting the principal amount from the total amount:
Compound Interest = 12100 - 10000
Compound Interest = 2100
Therefore, Mohit Anand will have to repay Rs. 12,100 to the AMS bank after 2 years, including Rs. 2,100 as compound interest.
Compound interest is calculated using the formula:
A = P(1 + r/n)^(nt)
where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial sum of money borrowed).
- r is the annual interest rate (in decimal form).
- n is the number of times that interest is compounded per year.
- t is the number of years the money is borrowed for.
Given Information
Let's assume Mohit Anand borrowed Rs. 10,000 from AMS bank at an annual interest rate of 10% compounded annually. The loan term is 2 years.
Calculating Compound Interest
Using the formula mentioned earlier, we can calculate the amount Mohit will have to repay after 2 years:
A = 10000(1 + 0.10/1)^(1*2)
A = 10000(1 + 0.10)^2
A = 10000(1.10)^2
A = 10000(1.21)
A = 12100
Calculating the Compound Interest
The compound interest can be calculated by subtracting the principal amount from the total amount:
Compound Interest = 12100 - 10000
Compound Interest = 2100
Therefore, Mohit Anand will have to repay Rs. 12,100 to the AMS bank after 2 years, including Rs. 2,100 as compound interest.
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Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest?
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Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest?.
Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohit Anand borrows a certain sum of money from the AMS bank at 10% per annum at compound interest?.
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