Using Compund interest formula, we can say that total Rs. 67 lakh and sixty thousand is owned by Sunil to the bank after 2 years .
Compound Interest Formulas :
You can also use the principal and interest rate to find compound interest. H. Total interest on principal and accrued interest not repaid within the repayment period. The compound interest formula is:
A = P( 1 + r/100)ᵗ
where A --> amount to pay by person after t years
P --> amount borrowed by person
r ---> rate of interest annually
t-----> time period
We have given that,
The amount borrowed by Sunil for education loan(P) = Rs. 40 lakh
Rate of interest (r) = 30% per annum
Interest is compunded annually.
time period (t) = 2 years
we have to calculate the amount to pay by Sunil after two years .
putting all known values in above formula,
A = 40,00000 ( 1+ 30/100)²
=> A = 40,00000(13/10)²
=> A = 40,00000×13×13/100
=> A = 40,000×169
=> A = 67,60,000
Hence, the amount that Sunil own to bank after two year is 67 lakh sixty thousand.
To learn more about Compund nterest , refer:
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