Question

Anamika took a loan of rs40000 from a branch of a bank.the rate of interest is 5% per annum.find the difference in amount she would be paying after 18 months if the interest is compounded annually and compounded half yearly.

Answer 1

we use compound interest formula in this sum i.e. P1+R/10 multiply by t
So the answer is 40000+5/10 multiply by 18
=40000+9/1
=40001.

please check the answer again by the help of your teacher or guardian ✌✌

Hope I was helpful to you

Answer 2

Answer:

38.431783

Step-by-step explanation:

Case 1)

Principal = Rs.40000

Rate of interest = r = 5% = 0.05

Time = 18 months = $\frac{18}{12} years$

The interest is compounded annually

No. of of compounds per year = 1

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

$A=40000(1+0.05)^{\frac{18}{12}}$

$A=43037.193217$

Case 2)

Principal = Rs.40000

Rate of interest = r = 5% = 0.05

Time = 18 months = $\frac{18}{12} years$

The interest is compounded half yearly

No. of of compounds per year = 2

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

$A=40000(1+\frac{0.05}{2})^{\frac{ 2 \times 18}{12}}$

$A=43075.625$

Difference in amount=43075.625-43037.193217=38.431783

Hence  the difference in amount she would be paying after 18 months if the interest is compounded annually and compounded half yearly is 38.431783