Question

4. Robel obtained a loan of Birr 250,000 from the commercial bank of Ethiopia. If the rate of interest is 8% per annum compounded annually and repaid Birr 50, 000 at the end of first year. What amount will he has to pay to the bank after 2 years to discharge his debt?

Answer 1

5. What sum of money will amount to Birr 21296 in 3 years at 10% per annum, compounded annually?

Answer 2

2. Compare the simple interest and compound interest on Birr 8,000 at 10 % per annum for three years if the interest is compounded annually