Rahman lent Rs. 16000 to Rasheed at the rate of 12 % per annum compound interest. Find the amount payable by Rasheed to Rahman after 3 years.
Given details are,
Principal (p) = Rs 16000
Rate (r) = 12 % per annum = 12.5%
Time (t) = 3 years
By using the formula,
A = P (1 + R/100)n
= 16000 (1 + 12.5/100)3
= 16000 (112.5/100)3
= Rs 22781.25
∴ Amount is Rs 22781.25
