Question

Jayanti borrowed a sum of 16000 to purchase a washing machine at the rate of 5% per annum compounded annually for two years. Calculate the amount she will have to pay after two years and also find the interest.

Answer 1

Answer:

Step-by-step explanation:

Amount = P(1 + r%)^n

             $= 16000*(1 + \frac{5}{100})^{2}\\\\= 16000 * (1 + 0.05)^{2}\\\\= 16000 * (1.05)^{2}\\\\= 16000 * 1.1025\\= 17640$

Interest = Amount  - Principal

             = 17640 - 16000

             =  1640