Aditi borrowed rupees 25000 from a bank at 8% p.a rate of interest to buy a dishwasher . if the interest is compoounded semi annually . find the interest and amount paid by aditi at end of 1.5 yrs
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Answer:
3121.60
Step-by-step explanation:
since interest is compounded semi annually i.e. at every six month, the effective rate of interest will become 8%/2 = 4% and effective time will be doubled to 3 years.
now
A = P(1+r/100)^n
= 25000*(1+4/100)^3
= 25000*(26/25)^3
= 25000* 17576/(25*25*25)
= 40*17576/25
= 8*17576/5
= 140608/5
= 28121.60
Interest = A- P
= 28121.60 - 25000
= 3121.60
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