Respuesta :

Given:

Principal value of loan = 55,000

Rate of interest = 5%

Time = 2 year

To find:

The amount after two years.

Solution:

The formula for amount is

[tex]A=P\left(1+\dfrac{r}{100}\right)^t[/tex]

Where, P is principal, r is rate of interest in %, t is time in years.

Putting P=55,000, r=5 and t=2, we get

[tex]A=55000\left(1+\dfrac{5}{100}\right)^2[/tex]

[tex]A=55000\left(1+0.05\right)^2[/tex]

[tex]A=55000\left(1.05\right)^2[/tex]

[tex]A=55000(1.1025)[/tex]

[tex]A=60637.50[/tex]

Therefore, the amount after two years is P60637.50.

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