Given:
The principal = $ 4000
The rate of interest = 22 %
To find the loan amount a) after 1 year and b) after 3 years.
Formula
Loan amount is
![A = P(1+\frac{r}{100} )^{t}](https://tex.z-dn.net/?f=A%20%3D%20P%281%2B%5Cfrac%7Br%7D%7B100%7D%20%29%5E%7Bt%7D)
where,
A be the loan amount
P be the principal
r be the rate of interest and
t be the time.
Now,
a) Taking, P = 4000, r = 22, t = 1 we get,
![A = 4000 (1+\frac{22}{100} )^{1}](https://tex.z-dn.net/?f=A%20%3D%204000%20%281%2B%5Cfrac%7B22%7D%7B100%7D%20%29%5E%7B1%7D)
or, ![A = 4880](https://tex.z-dn.net/?f=A%20%3D%204880)
Again,
b) Taking, P = 4000, r = 22 and t = 4 w eget,
![A = 4000(1+\frac{22}{100})^{4}](https://tex.z-dn.net/?f=A%20%3D%204000%281%2B%5Cfrac%7B22%7D%7B100%7D%29%5E%7B4%7D)
![or, A = 7263.39](https://tex.z-dn.net/?f=or%2C%20A%20%3D%207263.39)
Hence,
a) The amount of loan after 1 year is $ 4880
and b) The amount of loan after 4 year is $ 7263.39.