SOLUTION: Save Mart borrowed some amount from a bank at a rate of 7% per annum compounded annually. If he finished paying his loan by paying Rs1 8,500 at the end of 3 years, then what i

Question 1194095: Save Mart borrowed some amount from a bank at a rate of 7% per annum compounded annually. If he finished paying his loan by paying Rs1 8,500 at the end of 3 years, then what is the amount of loan that he had taken? Round your answer to the nearest thousands?
Answer by greenestamps(13209) (Show Source): You can put this solution on YOUR website!

If the interest is 7% compounded annually, then the balance due on the loan increases by a factor of 1.07 each year. If the balance at the end of 3 years is 18,500, then

Use a calculator and round as directed.

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