Question

Anamika took a loan of ₹40000 from a branch of a bank the rate of interest is 5% per annum find the difference in amount she would be paying after 3/2 years if the interest is compounded annually and compounded half yearly?​

Answer 1

Step-by-step explanation:

Since, the amount formula in compound interest is,

A=P(1+\frac{r}{n})^{nt}A=P(1+

n

r

)

nt

Where,

P = principal amount,

r = rate of interest annually,

n = number of periods in a year,

t = number of years,

If P = 40000, r = 5% = 0.05,

Then, the difference in amount she would paying after 1½ years if the interest is compounded annually and compounded half yearly.

d=40000(1+\frac{0.05}{2})^3-40000(1+\frac{0.05}{1})^\frac{3}{2}d=40000(1+

2

0.05

)

3

−40000(1+

1

0.05

)

2

3

=40000((1.025)^3-(1.05)^\frac{3}{2})=40000((1.025)

3

−(1.05)

2

3

)

\approx 38.43\text{ rupees}≈38.43 rupees