Question

8. Michael borrowed 16000 from a finance company at 10% per annum, compounded
half-yearly. What amount of money will discharge his debt after 1½ years

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Answer 1

Answer:

18,522

Step-by-step explanation:

Principle = p = 16,000

Rate of interest = i = 10% i.e. 0.10%

Time = n = 1½

Compounded half yearly i.e. 0.10/2 = 0.05

→ $\bold{\green{\boxed{Amt = p(1+i)^n}}}$

→ $\bold{Amt = 16,000(1+0.05)^3}$

→ $\bold{Amt = 16,000(1.05)^3}$

→ $\bold{Amt = 16,000(1.157625)}$

→ $\bold{Amt =18,522}$

Thus the amount is 18,522

Answer 2

Answer:

P=16000

R=10% ÷2=5%

n=1(1/2)=3/2×2=3years

we have,

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

A=16000(1+5/100)^3

A=16000×21/20×21/20×21/20

A=18522.