Question

The principal is $1,00,000 and the loan adds 5% interest of the debt and rounds it to nearest 1,000 above month by month.Calculate the amount of debt in 7 months.

Ans of question=$144000.How?

Answer 1

let's create a formula

1,000,000 = x

x = 5%(x) = new x

etc etc

so you would do this 7 times

Answer 2

If I read the question correctly, the rate is 5% per month!!!
because of the rounding to the nearest $1000 <b>above</b>, we cannot use our nice standard formula.
so we have to do this month by month.

btw, using your comma divider , $1,00,000 makes no sense, I will read it as $100,000 based
on their answer

after month 1: 100,000(1.05) = 105,000
after month 2: 105,000(1.05) = 110,250 ----> 111,000
after month 3: 111,000(1.05) = 116,550 -----> 117,000
after month 4: 117,000(1.05) = 122,850 -----> 123,000
after month 5: 123,000(1.05) = 129,150-----> 130,000
after month 6: 130,000(1.05) = 136,500 -----> 137,000
after month 7: 137,000(1.05) = 143,850 ----> <b>144,000 !!!!!</b>

What an absurd and ridiculous question !!!
Other than some criminal money laundering scheme or loan shark business,
who would have a contract like that?

Answer 3

I also don't know!