Question

Sandeepbhau borrowed 120000 rupees from a bank for 4 years at the rate of `8 1/2` p.c.p.a. for his son’s education. What is the total amount he returned to the bank at the end of that period?

Answer 1

Principal = 120000, P = 120000, R = 8.5, T = 4

∴ Total interest = `(P xx R xx T)/100`

= `(120000 xx 8.5 xx 4)/100`

= `(120000 xx 85 xx 4)/(100 xx 10)`

= 120 × 85 × 4

= 40800

The total amount returned to the bank = 120000 + 40800 = 160800 rupees.