Question

1 2) if Rs 25000 is borrowed for 2 years at 8% per annum . Find a) simple interest and b
amount
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Answer 1

Answer:

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Answer 2

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A=P(1+r)t

Here,

A= Final Amount

P= Principal

r= Rate of interest

t= Time (years)

Given that amount is compounded half yearly,

1.5 years would include 3 cycles.

t=3

P=25000

r=220%=0.1              (∵r=20%p.a. so r = 10% half yearly) 

∴A=25000(1.1)3= Rs. 33275