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Mr. Lord borrowed $100,000 from a bank at a rate of 8% per annum for 3 years. Calculate the amount accruing for the loan

Sagot :

Answer: [tex]\$125,971.2[/tex]

Step-by-step explanation:

Given

Principal amount [tex]P=\$100,000[/tex]

Rate of interest [tex]r=8\%[/tex]

Time period [tex]t=3\ yr[/tex]

Amount in compound interest is given by

[tex]\Rightarrow A=P\left(1+r\%\right)^t\\\Rightarrow A=100,000(1+0.08)^3\\\Rightarrow A=\$125,971.2[/tex]

Thus, the amount accruing for loan is [tex]\$125,971.2[/tex]

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