Question

3. Gola lent Pola 32,500 to purchase a bike
125. per annum. If the interest is compounded
semiannually, find the interest paid by Polu after
re​

Answer 1

Answer:

Step-by-step explanation:

Given  

golu lent polu 32,500 to purchase a bike at 12.5% per annum. If the interest is compounded semi-annually,find the interest paid

semi – annually is 6 months

P = 32,500, r = 12.5 %. n = 1 1/2 =3/2  

We know that A = P(1 + r/100)^n

                       A = 32500 (1 + 12.5 / 100 x 1/2 )^3/2 x 2

                           = 32,500 ( 17/16 )^3

                        A = 38982.5439

Now C.I = A – P

             = 38982.5439 – 32,500

      C.I = 6482.5439