Question

A man borrowed Rs. 25,000/- what total amount would he pay after one year, if
the rate of interest is 20% annual and is compounded half yearly.
o rote of​

Answer 1

Step-by-step explanation:

A=P(1+r)^t

A=P(1+r)^t=Here,

A= Final Amount

A= Final AmountP= Principal

A= Final AmountP= Principalr= Rate of interest

A= Final AmountP= Principalr= Rate of interestt= Time (years)

Given that amount is compounded half yearly,

Given that amount is compounded half yearly,1.5 years would include 3 cycles.

t=3

t=3P=25000

t=3P=25000r= 20%/2

=0.1 (∵r=20%p.a. so r = 10% half yearly)

∴A=25000(1.1) 3= Rs.