Question

18. A sum of Rs 2,400 is borrowed at a half-yearly compound interest rate of 6 1/4%
(i) Find the amount of the debt at the end of one year.
(ii) Find the amount of money required to clear off the debt after 1 1/2 years
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Answer 1

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Amount to be paid after 1 year.

= Actual amount ( 1 + rate/100 )^time

= 2,400( 1+6.25/100)²

= 2709.375

For amount required after 1.5 year to clear of the debt

= 2,400( 1+6.25/100 )³

= 2,400( 17/16 )³

= 2878.7109.

Answer 2

= Actual amount ( 1 + rate/100 )^time

= 2,400( 1+6.25/100)²

= 2709.375

For amount required after 1.5 year to clear of the debt

= 2,400( 1+6.25/100 )³

= 2,400( 17/16 )³

= 2878.7109.