Arif take a loan of rs 80000 from a bank. If the rate of interest is 10%.per annum find the difference in amount he would be paying after 13/2 years if the interest is compounded half yearly
Answers
Arif took a loan of Rs. 80
Arif took a loan of Rs. 80,000 from a bank. If the rate of interest is 10% p.a., find the difference in amounts he would be paying after 1
2
1
years if the interest is (i) compounded annually and (ii) compounded half-yearly.
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ANSWER
1) Compounded Annually :
P=Rs.80000
R=10% p.a.
T=1
2
1
years ⟹n=1+
2
1
Amount for 1st year.
A=P[1+
100
R
]
n
=Rs.80000[1+
100
10
]=Rs.88000
SI on Rs. 88000 for next 1/2 year
=Rs.88000×
100
10
×
2
1
=Rs.4400
Therefore, Amount = Rs.88000+Rs.4400 = 92400Rs.
2) Compounded half yearly :
P=Rs.80000
R=10% p.a.=5% per half year
T=1
2
1
years ⟹n=3
A=Rs.80000[1+
100
5
]
3
A=Rs.92610
Thus, the difference between the two amounts = Rs.92610−Rs.92400 =Rs.210
Answer:
The difference is 1,01,200
Solution:
Principle=80000
Rate=10%
Time=1 3/2 years
Interest for first year=8,000
Amount for first year=88,000
Simple interest for 3/2 year=
P*T*R/100
=88,000*10*3/2
=88,000*15=13,20,000/100
=13,200
Simple interest for 3/2 years=13200
Interest for 1 3/2 years=CI for one year + SI for 3/2 year
=8,000+13,200
=21,200
Now,
Amount = Principle + Interest
=80,000+21,200
=1,01,200
Therefore,
Amount = 1,01,200
