Question

A man borrowed Rs 16000 at 10% per annum interest compounded half yearly. Find the amount repayable after one year.​

Answer 1

Given:-

Principal = ₹16,000,  

Rate % = 10% per annum compounded half yearly      and

Time = 1 year

Solution:-

We use Formula,  A = $P(1 + \frac{\frac{R}{2}}{100})^{2T}$                      

                                 = ₹16,000$(1 + \frac{\frac{10}{2}}{100})^{2 * 1}$

                                 = ₹16,000$(1 + \frac{5}{100})^{2}$

                                 = ₹16,000$(\frac{20+1}{20})^{2}$

                                 = ₹16,000 × $\frac{21}{20}$ ×

                                 = ₹40 × 21 × 21

                                 = ₹17,640

∴ Amount = ₹17,640

Some Important Formula:-

• A = $P(1 + \frac{R}{100})^{T}$   If Compounded Yearly.

• A = $P(1 + \frac{\frac{R}{2}}{100})^{2T}$  If Compounded Half Yearly.

• A = $P(1 + \frac{\frac{R}{4}}{100})^{4T}$  If Compounded Quarterly.

• Compound Interest = Amount - Principal

• Compound Interest = $P[(1 + \frac{R}{100})^{T} - 1]$

Where, A = Amount

            P = Principal

            R = Rate %

and,     T = Time