00:01
Now, in this problem it says that tanvi borrowed $200 ,000 at 4 % per annum, this is the rate of interest given and it is compounded quarterly.
00:14
Okay, now we need to find the amount that the tanvi needs to pay back after 1 year.
00:21
So time period is given to be 1 year.
00:25
Now the formula for the compound interest is given by a is equal to p times 1 plus r over n to the power n times t.
00:36
Here the amount borrowed is $200 ,000, this is the principal amount p.
00:41
Rate of interest is 4%.
00:42
Now it is compounded quarterly, that means n should be equal to 4.
00:46
So we have all the values, we can plug it here to find the amount.
00:50
So this would be equals to 200 ,000 times 1 plus, this is 4 % means 0 .04...