Given:
Present value= ₹ 125000
Interest rate= 8 % per annum
Time= 3 years
To find the amount we have the formula,
Amount (A) = P (1+(R/100))n
Where P is present value, r is rate of interest, n is time in years.
Now substituting the values in above formula we get,
∴ A = 125000 (1 + 8/100)3
⇒ A = 125000 (1+108/100)3
⇒ A = 125000 (108/100) (108/100) (108/100)
⇒ A = 125000 × 1259712/1000 = 1259712/8
⇒ A = ₹ 157464
Anand has to pay ₹ 157464