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Ramesh borrowed Rs 15625 from suresh to buy a scooter. If the rate of interest is 16%...
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High School Teacher
To solve, use the formula of compounding interest which is:
`A = P(1+ r/n)^(nt)`
where P - principal/initial amount, r - annual rate on interest, number of times compounded per year, t - number of years the amount is borrowed for, and A - amount of money accumulated after t years.
Substitute the given values P=Rs15625 , r = 16%=0.16 and t=9/4 years. Since r is compounded annually, n=1.
Posted by mjripalda on January 26, 2013 at 10:25 AM (Answer #2)
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