Question

A man borrowed Rs 18,000 for 2 years at 12% p.a.
compounded annually. He paid only half of the principal after
2 years and the remaining principal and interest at the same
rate but compounded semi-annually after next two years.
How much interest was paid in those 4 years?

Answer 1

Answer:

Rs.8143.40

Step-by-step explanation:

Here,

CA after 2 years = P(1 + R/100)^T

                           = 18000( 1 + 12/100)^2

                           = 22579.20.

After paying half of principal, i.e; 18000/2 = 9000, he has left pay 22579.20 - 9000 = 13579.20.

Now for semi-annually,

CA = P(1 + R/200)^2T

      = 13579.20( 1 + 12/200)^4

     = 17143.40.

Total amount he paid = 9000 + 17143.40 = 26143.40.

So interest he paid = 26143.40 - 18000 = Rs.8143.40.