First year :
9450 + 9450 × ( 6 / 100 ) =
9450 + ( 9450 × 6 / 100 ) =
9450 + ( 56700 / 100 ) =
9450 + 567 =
Rs 10,017
_____________________________
Second year :
10,017 + 10,017 × ( 6 / 100 ) =
10,017 + ( 10,017 × 6 / 100 ) =
10,017 + ( 60,102 / 100 ) =
10,017 + 601.02 =
Rs 10,618.02
______________________________
Third year :
10,618.02 + 10,618.02 × ( 6 / 100 ) =
10,618.02 + ( 10,618.02 × 6 / 100 ) =
10,618.02 + ( 63,708.12 / 100 ) =
10,618.02 + 637.0812 =
Rs 11,255.1012
_______________________________
4th year :
11,255.1012 + 11,255.1012 × ( 6 / 100 ) =
11,255.1012 + ( 11,255.1012 × 6 / 100 ) =
11,255.1012 + ( 67,530.6072 / 100 ) =
11,255.1012 + 675.306072 =
Rs 11,930.407272
_______________________________
5th year :
11,930.407272 + 11,930.407272 × ( 6 / 100 )
=11,930.407272 +( 11,930.407272 × 6 / 100)
= 11,930.407272 + ( 71,582.443632 / 100 )
= 11,930.407272 + 715.82443632
= Rs 12,646.23170832
_______________________________
Thus Mike have to pay approximately Rs 12,646 after 5 years.
