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4. Mrs. Kavita borrowed 20,000 from a money lender at the rate of 4% per annum for 1-years compounded
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half-yearly. Find the amount she has to pay at the end of 15 years.
Answers
Total Amount borrowed by Jaya = Rs.50,000
let us first calculate the interest on that amount in the first year
Interest=100Principle×Time×Rate
Interest=10050000×1×12
Interest=Rs 6000
So,Jaya has to pay an interest of Rs. 6,000 by the end of the first year.
But she has paid an amount of Rs. 33,000
So,she has cleared a debt of Rs.33,000−Rs.6,000=Rs.27,000
Remaining debt of Jaya = Rs.50,000−Rs.27,000=Rs.23,000
By the end of the second year she has to pay an interest for an amount of Rs.23,000
Interest= 10023,000×1×15
Interest=Rs.3,450
So the total amount she has to pay to clear her debt= Amount+Interest
=Rs.23,000+Rs.3,450
=Rs.26,450
So, Jaya has to pay a total amount of Rs.26,450 to clear her debt
Answer:
If the compound interest is half yearly .
Amount = P [ 1 + r/200]²ⁿ
= $ 20000 [1 + 4/200]³
= $ 20000 x 51/50 x 51/50 x 51/50
= $ 20000 x 132651/125000
= $21224.16
Amount = $21224.16