Compound Interest.

[Neel]

Riya had Borrowed rs.45,000 with 7×1/2% p.a being the rate for 45 years Compounded quarterly.
What is the ammount she would have to pay after 60 years,if the late fine is 30% of the Principal Per quarter?

 

[JeffM]

Wait! She has not made any payments for 240 quarters?

Where can I find her bank? They have my business for sure.

 

[Neel]

@JeffM
This some is Given By my teacher and most of us found it Absurd.

 

[Deleted member 4993]

@JeffM
This some is Given By my teacher and most of us found it Absurd.

However, - where is your work on this (absurd!) problem?

 

[JeffM]

Hint Does the 30% act similarly to compound interest or simple interest?

 

[HallsofIvy]

45 years is 4*45= 180 quarters but 60 years is 4*60= 240 quarters. Also 7.5% (or 7+ 1/2% NOT "7x 1/2") is 7.5/4= 1.75% per quarter. Was she to pay this off all at the end of the 45 years or quarterly or annually?