Question

After losing your job, and needing cash fast, you decide to try

Answer 1

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

$A = P(1+\frac{r}{100} )^{t}$

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,

$A = 4000 (1+\frac{22}{100} )^{1}$

or, $A = 4880$

Again,

b) Taking, P = 4000, r = 22 and t = 4 w eget,

$A = 4000(1+\frac{22}{100})^{4}$

$or, A = 7263.39$

Hence,

a) The amount of loan after 1 year is $ 4880

and b) The amount of loan after 4 year is $ 7263.39.